Currency: NZ dollar hits low point overnight

The New Zealand dollar fell to a week-low around US57.35c early today but then quickly pulled itself out of the hole.

After a choppy time overnight, the kiwi was up to US58.15c by 8am from US57.80c at 5pm yesterday.

While the kiwi recovered against the greenback, the US dollar gained broadly as persistent concerns about the global economy added to the US currency's safe-haven allure.

The euro came under pressure after European Central Bank (ECB) governing council member Axel Weber said it would announce a package of "non-standard measures" in May to boost the euro-zone economy.

The kiwi fell to a month-low against the Australian dollar around A79.50c early today before edging up to A79.90c by the local open, still down on the A80.50c at 5pm.

BNZ Capital currency strategist Danica Hampton said some of the NZ dollar's weakness against the aussie was due to the perceived fundamental differences between this country and Australia.

"While we agree the Australian economy is probably in better shape than the NZ economy, it is only at the margin," she said.

As such, she did not think arguments for further dramatic weakness of the NZ dollar against the aussie were compelling.

The NZ dollar was up to 0.4398 euro at 8am from 0.4360 at 5pm, with the kiwi also rising to 57.75 yen from 56.85.

- NZPA