The New Zealand dollar tumbled to its lowest level in a year on Wednesday as investors continued to opt out of risky positions in high-yield currencies like the kiwi, due to global growth concerns.
The dollar fell about 1% on Wednesday to 67.35 US cents
However it recovered in early trading on Thursday, and at 12.30pm was at 68.54 US cents
The currency has fallen about 6% in the past two weeks and many expect the slide will continue.
ANZ National Bank chief economist Cameron Bagrie calculates the New Zealand dollar will average about 65 US cents over the next five years, but in the shorter term, it is likely to be lower than that.
At the same time, the US dollar has hit an 11-month high against a range of currencies, due to the souring global economic outlook.
David Powell from Bank of America says the appreciation of the US dollar against European currencies shows the market believes European economies are not as resilient as originally thought.
