KEY POINTS:
The New Zealand dollar reversed the downward trend dominant since Tuesday night throughout much of yesterday and overnight.
From a low point below US68.60c around 9.30am yesterday the kiwi regained lost ground to be buying US69.20c around 8.15am today.
It also strengthened against the currencies of other major trading partners to be worth A88.57c this morning from A87.97c at 5pm yesterday, 0.5366 euro from 0.5314, and 83.27 yen from 82.42. The trade weighted index was at 68.92 from 68.43.
The US dollar rose overnight to its highest since late November against the euro as demand for the 13-nation currency fell after the European Central Bank suggested it may not raise rates again next month as some had anticipated.
The euro also dropped sharply against sterling, which rallied against several currencies after a surprise interest rate increase by the Bank of England.
Meanwhile, the greenback rallied against the yen, reaching its highest level in over a year, above 120.00 yen and on course for its largest daily increase in a month.
Investors doubt that a rate raise next week from the Bank of Japan will boost the yen's appeal among non-Japanese investors, given that it will still be the lowest-yielding currency within the Group of Seven richest nations.
- NZPA