The New Zealand dollar is heading for a 0.8 per cent fall this week as traders second guess the actions of the New Zealand and US central banks.
The kiwi fell to 82.99 US cents at 5pm in Wellington from 83.64 cents at the close of trading last week.
But it was up from 82.78 cents at 8am and 82.57 cents on Thursday.
Minutes to the Federal Reserve's last policy meeting released this week indicated the US central bank has no plans to slow down its withdrawal of quantitative easing.
While upbeat American manufacturing figures fuelled some investors' appetite for risk after weak Chinese and European industrial production numbers, the Fed's removal of monetary stimulus is expected to underpin the greenback.
Against that, traders are weighing up the prospect New Zealand's Reserve Bank will lift the official cash rate next month as it looks to head off the threat of future inflation that may appear in an accelerating economy.
"In my view, the kiwi will decline over 2014 as the US comes back stronger," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand.
"I'm really looking for the RBNZ to start getting traction."
The kiwi edged up to 92.35 Australian cents from 92.26 cents on Thursday, and rose to 85.05 yen from 84.14 yen and to 60.51 euro cents from 60.03 cents.
