The New Zealand dollar fell two-thirds of a cent against the greenback after the key August non-farm payrolls report showed the US economy added no new jobs in the month.
The report prompted investors to abandon risk-sensitive assets in favour of gold and government bonds.
The NZ dollar recently traded at 84.36 US cents, down from 85.03 cents on Friday in New York, and fell to 72.67 on the trade-weighted index of major trading partners' currencies from 72.89 previously.
The nervous mood on global equity markets ahead of the non-farm payroll report shifted into full risk-off mode on Friday after the US employment data showed no new jobs were created in the month, well short of the 60,000 expected by a Bloomberg poll of economists.
The negative mood led to risk-sensitive currencies, such as the kiwi and Australian dollars, falling as investors fled for so-called safe haven assets.
"It was a rough close to last week for global markets and hence the New Zealand dollar," said Alex Sinton, a senior dealer at ANZ New Zealand.
"The cap on the New Zealand dollar should continue to be lowered in the early part of this week given the developments on the US employment front."
On the crosses, the kiwi recently traded at 79.49 Australian cents, up from 79.38 cents on Friday, and fell to 64.85 Japanese yen from 65.33 yen previously. It fell to 59.60 euro cents from 59.68 cents last week, and dropped to 52.15 pence from 52.44 pence previously.
NZN