The RBNZ has to balance both the growing housing bubble and the dairy sector, which is under pressure, explains UBS' Wayne Gordon.
There has been a revival of U.S. oil production which has again fueled fears of an over-supply, says Jefferies's Sean Darby.
The kiwi strengthening against the dollar is partly due to speculation of a deeper rate cut by the RBNZ, explains ASB Bank's Nick Tuffley.
HSBC's Paul Bloxham says the RBNZ cut rates because inflation is still well below target, even though New Zealand's growth story is still quite good.
The U.S. dollar fell broadly on Wednesday as U.S. Treasury yields fell and investors waited on a speech by Fed Chair Janet Yellen.
Demand for the Kiwi dollar is strong because of the growth and yield that New Zealand offers, says CIBC's Patrick Bennett.
The Kiwi-Aussie dollar cross is one way to play the currency markets, says Saxo Capital Markets' Kay Van-Petersen.
The market will only focus on Fed risk after it has bypassed near-term event risks such as the U.S. elections, says JPMorgan's Jonathan Cavenagh.
Sterling fell against the dollar after the Bank of England hinted at further easing.
This comes ahead of a week of data likely to feed the debate on the chances of a rise in U.S. interest rates this year.
The U.S. dollar reversed losses to trade about a third of a percent higher Friday after the headline figure on the July employment report topped expectations.
Sterling saw its biggest falls since the aftermath of June's Brexit vote.
The dollar gained as ADP jobs data revealed new U.S. private sector jobs, suggesting an improving labor market.
The euro rose above $1.12 for the first time in more than a month, while the yen hit its strongest in three weeks.
The dollar recovered after its poorest weekly performance in three months, while the yen weakened after surging more than 3 percent.
The yen soared against the dollar after a round of modest monetary policy easing from the Bank of Japan disappointed investors.
The dollar fell against the yen as expectations faded of the Bank of Japan delivering a radical stimulus package this week.
The U.S. dollar gained against the euro and the yen after the Federal Reserve left the federal funds rates unchanged on Wednesday.
The yen hit a high against the euro and rose against the dollar as traders lower expectations of a Japanese stimulus injection.
The pound is expected to push even lower, according to currency analysts, as the first signs emerged of the impact it's giving to the business sector.