KEY POINTS:
The New Zealand dollar fell nearly 1c against the greenback overnight and was around a 10-1/2-month low against the US currency this morning.
At 8am, the kiwi was buying US71.81c, having been down near US71.70c shortly beforehand after falling from US72.65c about 7pm.
The greenback hit a seven-month high against the yen as a drop in oil prices and renewed expectations of low Federal Reserve interest rates were seen as helping the sluggish US economy.
Demand for the euro fell ahead of a policy meeting of the European Central Bank, which is widely expected to leave benchmark borrowing costs unchanged at 4.25 per cent.
A report also showed German manufacturing orders for June dropped by a sharp 2.9 per cent and stoked fears of a sustained period of weakness in Europe's biggest economy.
The NZ dollar also eased against the European currency, moving to a six-year low near 0.4650 euros. By 8am the kiwi was at 0.4659 euros from 0.4681 at 5pm yesterday.
Against the Australian dollar the kiwi was little changed at A78.98c from A79.06c, while the NZ dollar firmed against the yen to 78.86 from 78.58. The trade weighted index was 65.33 at 8am from 65.63 at 5pm.
The ANZ bank today said both the NZ and Australian dollars had not been immune to US dollar strength.
The trans-Tasman currencies continued to face selling pressures as markets in both countries tested the possibility of their respective central banks cutting interest rates by 50 basis points in September.
Labour data in both countries today would be key, ANZ said.
New Zealand's second quarter Household Labour Force Survey, due out at 10.45am, should "further work over" the NZ dollar providing no respite to current weakness.
- NZPA