Most New Zealand businesses expect the kiwi - already at a nine-month low against the US dollar - to decline further.
More than 60 per cent of New Zealand respondents to the ANZ kiwi dollar sentiment survey said they expected the currency to lose further ground against the greenback over the next month, with 72 per cent of overseas correspondents anticipating the same.
About $1.5 billion of currency is traded in the New Zealand dollar each day, with overseas sentiment dominating direction, says ANZ head of market economics and strategy, Cameron Bagrie.
The kiwi closed at US67.53c yesterday and was trading at levels not seen since September last year.
The survey - part of an ANZ Market Focus - questioned 500 prominent businesses and overseas currency market participants.
"If such bearish sentiment proves accurate, the New Zealand dollar will be competing with some peripheral parties for support," Bagrie said.
Cracks were appearing in New Zealand's economic foundations, which had eliminated the "oasis of prosperity" premium in the kiwi, he said.
Westpac economist Andrew Fung said the survey results were "not that surprising".
"All the negative factors are there - it all adds to the negative sentiment."
Among other factors, the economy was still feeling the effects of the strong kiwi dollar "and that's still weighing on export earnings", he said.
"Carter Holt Harvey ... wouldn't be facing so many problems if the New Zealand dollar hadn't strengthened so much."
Fung said the strength of the currency had eroded Carter Holt Harvey's export revenues.
CHH has announced the sale of about a third of its 330,000ha forest estate because it has struggled to generate a return on capital invested.
Fung said a narrowing interest rate differential (New Zealand's benchmark interest rate is 6.75 per cent, the US rate is 3.25 per cent), and slowing immigration could also hurt the kiwi.
- NZPA
Most companies expecting kiwi dollar to slide further
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