KEY POINTS:
The New Zealand dollar recovered some ground lost in yesterday's US2c dumping, but analysts said it was unconvincing and edgy equity markets remain a concern.
It closed on US77.68c, against yesterday's US77.20c close but remained well down on the US78.90c level of early yesterday.
The ANZ bank today said the kiwi had managed to claw back some of yesterday's losses after finding yield demand out of Europe, following earlier heavy selling across the board. That selling had been sparked by a fresh bout of weakness in sharemarkets and yesterday's weaker than expected employment data.
The kiwi gained overnight on comments by United States Federal Reserve chairman Ben Bernanke which sent the US dollar to record lows.
Speaking before a congressional panel, Dr Bernanke said US economic growth would remain sluggish, supporting views for a December interest rate cut.
The US housing market contraction appeared likely to become even more severe and the Fed expected growth to slow "noticeably" in the fourth quarter compared to the previous three-month period, he said.
He also said the Fed - the US central bank - saw growth being sluggish in the first part of 2008, with strengthening likely only as prospects for the housing sector improved.
Here, new Reinz figures showed the local housing market slowing. National residential property sales recovered in October from a six-year low, but the median house price was little changed.
Against the Australian dollar, the kiwi was buying A87.40c at 5pm, nearly a cent above yesterday's level.
The trade weighted index ended the week on 71.16 from 70.88 at 5pm yesterday.
The US dollar remained close to a record low against the euro after Dr Bernanke downbeat comments.
Meanwhile, European Central Bank President Jean-Claude Trichet's vow to keep a grip on inflation gave the euro a little push towards a record high, since it left open the possibility that the ECB may raise interest rates further.
- NZPA
