Specialists at ANZ National Bank Ltd. and Barclays Capital claim that New Zealand’s dollar may drop to 5-month minimum versus its Australian counterpart.

Such forecast is based on the fact that the Reserve Bank of New Zealand is expected to leave its benchmark interest rate at 3% tomorrow, while Australia is likely to lift the rates up as its economic growth is gaining pace.

In addition, the country will face the consequences of the most destructive earthquake in 80 years that occurred at the beginning of the month. New Zealand’s third quarter GDP can get 0.4% lower due to the disaster. The costs of the earthquake are estimated to reach NZ$4 billion ($2.9 billion).

According to ANZ National Bank’s forecast, kiwi will fall to NZ$1.30 per Aussie in the next few months. Strategists at Barclays Capital note that New Zealand’s dollar will bottom at these level as the nation’s central bank may still raise rates later when economy rebounds after reconstruction.

Treasury Department predicts that GDP will gain 0.5 percentage point in the year to June 30, 2011. Analysts at Bank of New Zealand Ltd. believe that kiwi will advance to NZ$1.25 per Aussie by the end of 2010. In their view, the key rate will be hiked in December and through 2011 to rise to 5.5% at the beginning of 2012.

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