The New Zealand dollar could fall to US62c by the end of the year, ANZ says.

The New Zealand dollar has taken a dive against the greenback and will continue to fall to levels not seen since the global financial crisis, ANZ predicts.

ANZ senior macro strategist Phil Borkin said the kiwi fell to 64.80 US cents on Friday afternoon following better than expected economic indicators coming out of the United States.

Borkin said it was the first time the New Zealand dollar had threatened to fall below 64 US cents since 2015 - and the bank's view was that there were more falls to come.

In fact, ANZ was forecasting the dollar would go as low as 62 US cents by the end of the year, Borkin said.

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The last time the New Zealand dollar hit such levels was around 2009 "when we were right in the depths of the financial crisis", Borkin said.

But New Zealand was in a very different position to what it was 10 years ago, he said.

"The currency is at these levels because the US dollar is so strong and that's quite a different dynamic to 2008-09 when the New Zealand economy was in recession," Borkin said.

SUPPLIED ANZ senior macro strategist Phil Borkin says New Zealanders should not be too worried about a falling New Zealand dollar.

Against the Australian dollar the kiwi was around 92 cents - above historical averages, he said.

"It's certainly more of a US story at the moment rather than a New Zealand one."

A low New Zealand dollar can be positive news for our exporters because it makes our goods cheaper for overseas customers to buy.

Tourism in particular was a sector that benefited because tourists' money went further when our exchange rate was low.

On the flip side a low New Zealand dollar, generally speaking, is bad news for shoppers and importers because it reduces their purchasing power, making overseas goods more expensive.

Petrol was one of the first goods to reflect currency movements and in the past few weeks we've seen the price across New Zealand hitting record highs, Borkin said. This has been compounded by high oil prices and local fuel taxes.

"That's one area where it flows through usually very quickly."

Overseas holidays and online shopping would also cost more.

JOHN SELKIRK/STUFF A low New Zealand dollar is good for inbound tourism because it makes New Zealand a cheaper destination.

In recent years New Zealanders have been enjoying low prices for big ticket imported goods likes cars, TVs and appliances, he said.

But those days could be numbered, with a falling kiwi putting pressure on the price of imported goods.

The weakening kiwi dollar had come about from a range of factors, most of which ultimately stemmed from a strengthening US economy, he said.

"It's just really a perfect storm of a US economy that's continuing to rise."

The US dollar was bolstered overnight after comments made by the US Federal Reserve (the equivalent of the Reserve Bank of New Zealand) indicated it would continue to raise interest rates.

Interest rates had already been climbing steadily in the US on the back of falling unemployment, following a long period of stagnation post-global financial crisis, Borkin said.

Meanwhile, the Reserve Bank of New Zealand is talking about cutting interest rates in an attempt to stimulate the economy by encouraging employers to invest in businesses.

SUPPLIED New Zealanders have been enjoying low prices for imported goods like cars.

US Vice President Mike Pence also came out overnight with aggressive language towards China, which had spooked markets amidst concerns of trade wars and geopolitical tensions, Borkin said.

This weighed on the New Zealand dollar because our economy was so reliant on China.

A strengthening US dollar was also bad news for emerging markets, many of which were Asian countries which had borrowed money in US dollars, he said.

As a result the kiwi had weakened against most currencies, because, being an export nation, the New Zealand economy was reliant on emerging markets.

"If the US dollar is stronger and interest rates in the US are higher then that will have implications for global growth and hence the demand for our exports."