The Kiwi dollar is falling with ''no end in sight,'' says one currency analyst.

Exporters are celebrating what appears to be a sustained fall in the New Zealand dollar, as global market uncertainty and weakening growth at home take hold.

The kiwi fell to a fresh five-year low overnight of US67.48 cents on Tuesday night due to softening business confidence and the Greek debt crisis.

It recovered to US67.95c at 2.20pm on Wednesday, by which time Greece's official default on its IMF payment was considered to be largely priced in.

Even before the default, analysts said they believed the kiwi had further to fall. Westpac is forecasting the kiwi to slump to US64c by year's end.

Catherine Beard, chief executive of Export New Zealand said the weaker dollar would provide exporters with "a well needed shot in the arm".

"Right across the board there'll be a huge sense of relief, I'm already hearing that.

"I think exporters were really hanging in there with the high dollar and it will be hugely beneficial to them," Beard said.

"Because if they've remained viable, they've had to become very mean and lean, so there should be quite a bit of good upside."

The flipside was that the stronger dollar would hurt anyone importing goods or materials.

"If they're importing raw materials through the US and then exporting to Australia, it's still quite tough," Beard said.

ANZ economist Mark Smith said it would also take time for some exporters to benefit if they were hedged or were on fixed contracts.

Meat exporters were often unhedged and were exposed to the recovering US markets, he said.

"If they haven't hedged very much, the benefits should flow through fairly quickly."

However, dairy exporters, who were often hedged and also suffering from declining world prices, were not so lucky.

"Part of the reason why our currency is falling is that the prices of what we sell have been falling as well. So while it's all very well having a lower currency, it could be a double-edged sword if the world prices for what they are selling have fallen as well," Smith said.

The softer New Zealand dollar was a "mixed blessing" for other reasons, particularly for travellers to the United States or Australia whose trips would now be more expensive.

The kiwi, which came so close to parity with the Australian dollar in April, fell sharply to A87.77c on Tuesday night, edging back to A88.05c on Wednesday afternoon.

FROM THE ARCHIVES:

* Aussies jealous as NZ dollar approaches parity

* NZ not immune to Greek crisis fallout, John Key says

* Clouds loom over NZ economy

Westpac currency strategist Imre Speizer said there was "no end in sight" for the dollar's decline.

"Most indicators point to things slowing down, confidence falling away and GDP slowing down quite a bit over the next quarter or two."

All eyes would be on the Fonterra global dairy auction on Thursday, and whether the Reserve Bank would be cut interest rates again on July 23.

"The theme the markets are toying with is whether the RBNZ will end up reversing all the hikes from the last year and cutting even further," as other central banks had done, said ANZ currency analyst Sam Tuck.

Westpac is forecasting cuts in July and September, with another cut possible before the year is out.

"We're expecting the OCR [official cash rate] to fall to 2.75 per cent at least," Speizer said.