The New Zealand dollar fell to its lowest level this year to 76.06 US cents, ahead of Fonterra's announcement early tomorrow morning on whether to revise the farmgate milk price paid to dairy farmers.
ASB Bank head of external foreign exchange sales Tim Kelleher said a sell-off in commodities across the Tasman and general weakness in Asian markets have also fuelled negative sentiment.
At about 5pm, the New Zealand dollar was down just over half a US cent from its opening this morning at 76.18 US cents, 92.51 Australian, 48.73 British pence, 0.6195 euro, 91.69 yen and 4.72 renminbi.
Share market up
The New Zealand share market rose today. The benchmark Top 50 Index closed up 14 point to 5543.
Salt Funds Management managing director Paul Harrison said the market had performed better today than most overseas markets, but had been unsettled by increasing signs that United States interest rates may soon rise.
Spark's share price rose 9.5 to $3.03.
Meridian's share price rose 3 cents to $1.76.
Mighty River Power's share price rose 8 cents to $3.08.
Fletcher Building fell 18 cents to $8.32.