NZ dollar heads for 2.4% weekly fall THE New Zealand dollar is heading for a 2.4 per cent weekly drop on a trade-weighted basis as the trans-Tasman currencies fall out of favour. The kiwi firmed to 79.69 US cents at 5pm in Wellington from 79.53 cents at 8am and 79.09 cents on Thursday, while the trade-weighted index fell to 74.25 from 74.41 on Thursday and 76.08 last week. The Australian dollar fell as low as 94.65 US cents, trading at 94.99 cents at 5pm in Wellington as investors continue to back away from the South Pacific as they rethink their positions in global assets. The prospect of the Federal Reserve winding back its $US85 billion a month asset purchase programme puts focus on the strength of US non-farm payrolls figures due on Friday in Washington, with chairman Ben Bernanke linking tighter monetary policy to an improvement in the country's labour market. "Global investors have decided to reassess their overweight views on the kiwi and Aussie dollars," said Dan Bell, currency strategist at HiFX in Auckland. The current mood does have the feeling of a more structural reallocation in global capital, and the kiwi and Aussie could continue to underperform for some time. The NZ currency is heading for a 0.4 per cent weekly gain against the greenback from 79.34 US cents last Friday, in a period where it traded between 78.99 cents and 81.19 cents. The kiwi dropped to 60.08 euro cents from 60.31 cents after European Central Bank policy makers kept their key rate at a record low. It sank to 76.76 yen from 78.40 yen on Thursday and gained to 83.87 Australian cents from 83.71 cents.