The New Zealand dollar weakened against all its major trading partners on Tuesday, except for the Australian.
Bancorp Treasury Services senior client advisor Peter Cavanaugh said the kiwi was dragged lower by the Australian dollar after the Reserve Bank of Australia released the minutes of its last meeting.
"The minutes show that they've left the door open for further rate cuts in Australia, which caused the Australian dollar to weaken, so that has taken the New Zealand dollar down with it," Mr Cavanaugh said.
"That weakness has been pushed further by the Reserve Bank statement and, as a result, the New Zealand-Australian exchange rate is actually slightly stronger but it's really an Australasian story around central banks."
The Reserve Bank of New Zealand's moves to restrict low deposit home loans from 1 October will have more of an impact on interest rates, Mr Cavanaugh said.
But Deutsche Bank economist Darren Gibbs said other comments from Reserve Bank Governor Graeme Wheeler did have an impact on the currency.
"The Governor quite forcefully made the point that the OCR will not be going up in near term," Mr Gibbs says.
Mr Wheeler had made it clear that the inflation outlook is fairly benign and that hiking interest rates at a time when our major trading partners are not would probably drive up the currency, he said.
"So what we've seen is just a general fall in interest rates and a weaker currency on the back of that."