The New Zealand dollar is heading for a 0.9 percent weekly decline as investors prepare for the central bankers' symposium in Jackson Hole, Wyoming, where Federal Reserve chair Janet Yellen will deliver a speech.
The kiwi fell to 84.09 US cents at 5pm in Wellington from 84.82 cents last Friday in New York.
It traded at 84.03 cents at 8am, up from 83.57 cents on Thursday.
The trade-weighted index is heading for a 0.5 percent weekly decline to 79.18 from 79.61 last week. It was at 78.91 on Thursday.
The US dollar index, a measure of the greenback against a basket of currencies, has drifted from its highest level in almost a year as traders prepare for Dr Yellen's speech after minutes to the Federal Open Market Committee's latest policy meeting raised the prospect of rising interest rates in the US.
That comes as falling commodity prices and a pause in New Zealand's tightening monetary policy cycle dim the attraction of the kiwi, which has benefited from relatively high yields.
"Is she going to dial back on the hawkish script we saw in the FOMC minutes? That will be the question," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.
"If Yellen signals that rates are going up, then it's 'come on (US) dollar' and the kiwi/US falls towards 83 (US cents)."
The kiwi came under pressure this week as lower growth forecasts from the Treasury, reduced inflation expectations and falling consumer confidence sapped expectations the Reserve Bank will hike interest rates again this year.
The kiwi was little changed at 90.23 Australian cents at 5pm in Wellington from 90.32 cents on Thursday, and rose to 87.23 yen from 86.76 yen and to 63.28 euro cents from 63.09 cents.
source: newshub archive