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"Victory could have been ours. We are aware the win was within reach."

Head coach Gregor Townsend expressed pride in the Scottish display versus New Zealand but felt deflated by a 25-17 loss at Murrayfield.

The hosts were behind seventeen to nil at the interval, only to storm back and tie the score on the hour.

However, the All Blacks, who had three players placed in the penalty box, scored late through Damian McKenzie to deny Scotland the opportunity of a historic win in this match-up.

"I'm really disappointed primarily, because the effort that went into that second half showing was all character," Townsend stated.

"It was crucial to kick on when it got to seventeen all and there were a couple of big moments that went New Zealand's way.

"Exceptional second half, we showed who we are today and we likely showed who we are by not getting the win as well.

"Progress is evident in this team and we must win those crucial points when the game is there for us.

"Elements of that game indicate we are up there with the top sides in the world. We just must make that next step."

Key Moments of the Match

• Scores from Ewan Ashman and Kyle Steyn brought Scotland back into an gripping contest.
• Darcy Graham and Rory Hutchinson had been held up over the line in the opening period when Cameron Roigard and Will Jordan notched points for the opponents.

"Opponents get fatigued when you apply pressure," said Townsend, who has now been defeated in three home Tests against the All Blacks as manager - all by narrow margins.

"I'd love to be playing New Zealand again next week. We meet Argentina and we must apply what we have learned.

"This is the initial occasion this squad has been united since the tournament. To get that cohesion straight away is challenging and to see it grow during the game is encouraging.

"However it's so frustrating with that effort that we didn't get a win.

"It's the closest we've been to winning, I believe. We controlled the later stages, field position, intensity, ability. We've not done that against New Zealand in our history and we are improved for the encounter.

"Our journey doesn't stop today. We have a crucial game next week and bigger games to come in the Six Nations."

Captain's Reaction

Scotland leader Sione Tuipulotu described the loss as "mixed feelings" and emphasized the importance of a win against Argentina, having started the autumn series with a historic result against the United States.

"I instructed the boys we required a reaction at half time," he said. "Either surrender or decide to go for it.

"We had nothing to lose and all to play for.

"It is essential we bounce back for next week because Argentina aren't going to make it any easier."