The New Zealand dollar has fallen to an eight month low as euro debt fears spread.
The dollar sank to 73.87 US cents after a poor German bond sale and worries about France's AAA credit rating shook confidence.
It was trading at 73.94 US cents at midday on Thursday.
The currency was already fragile after Wednesday's weak manufacturing figures from China, a major export market.
Westpac currency strategist Imre Speizer expects the dollar to fall to new lows sooner than earlier predictions and the New Zealand dollar will possibly fall to 70 US cents over the next few weeks.
He says the growing contagion from the eurozone crisis continues to hurt the dollar.
Mr Speizer says the dollar's rebound depends on what happens in Europe and most predictions are dire.
"This crisis has now gone global, we've seen the effects of it in Asian trade, we've seen it in Australian bond prices," he says.
Mr Speizer says while the impact of the debt crisis is not showing up in New Zealand interest rates yet, it is only a matter of time before it does.
He says the impact is certainly showing up in the NZ-US exchange rate.
Mr Speizer says Saturday's general election is not an issue for the currency market.
Meanwhile, analysts are now worrying that the eurozone debt crisis is beginning to slip into the German economy, which is usually seen as a powerhouse.
Germany has admitted it only placed €3.6 billion worth of 10 year bonds at its latest auction, despite offering €6 billion.
