According to the latest data released, the New Zealand dollar fell against the US dollar from 86.47 cents at 8am and 86.72 cents yesterday to the level of 86.01 US.

The trade-weighted index fell to the level of 80.38 from 80.94 yesterday. The national currency fellprices at the Fonterra Cooperative Group's online auction spread concerns that the Reserve Bank may not increase interest rates as much as expected. Many believe that the slowdown in the dairy sector may convince the central bank to increase its interest rates slowly.

International traders have said that the bank will add 118 basis points to the 2.75 percent official cash rate during the coming 12 months. The local currency dropped to 93.07 Australian centsfrom 93.61 cents yesterday, and slipped to 89.31 yen from 89.54 yen. The New Zealand dollar mightrise form the level of 86.25 US cents, according to market analysts. Meanwhile, New Zealandcommodity prices fell for the first time in four months during the month of March as milk and cheese prices fell significantly, according to ANZ Bank.

Market traders have said that they are looking closely at the US employment to determine if the US Federal Reserve will go ahead with the withdrawal of quantitative easing and prefer higher lending rates.