KEY POINTS:
The New Zealand dollar had an erratic night against the US currency amid global financial turmoil.
The kiwi peaked above US67.90c, then fell to below US66.50c early today before recovering some ground to be at US67.02c by 8am.
ANZ bank said a test of support for the NZ currency both locally and offshore overnight had seen enough demand to bring about a limited recovery.
More market participants were moving into the spectator section of the field.
"More support for the NZD appears evident across a range of interests as liquidity issues mean holding higher yielding assets at least delivers some returns," ANZ said.
The US dollar gained against the yen and the euro as investors expressed optimism that US lawmakers will reach a deal on the financial rescue plan rejected yesterday morning (NZT).
At today's local open, the NZ dollar was buying 0.4759 euro from 0.4667 at 5pm yesterday, while against the yen it was at 71.26 from 69.91.
Against the Australian dollar, the kiwi slid to A84.69c from A85.81c, with the trade weighted index lifting to 64.22 at 8am from 63.50 at 5pm.
Reuters currency rates:
8am today 5pm yesterday
NZ dlr/US dlr US67.02c US67.00c
NZ dlr/Aust dlr A84.69c A85.81c
NZ dlr/euro 0.4759 0.4667
NZ dlr/yen 71.26 69.91
NZ dlr/stg 37.70p 37.22p
NZ TWI 64.22 63.50
Australian dollar US79.13c US79.95c
Euro/US dollar 1.4082 1.4356
US dollar/yen 106.36 104.34
- NZPA