The New Zealand dollar dipped below 78 US cents in overnight trading but started local trading today above that figure as investors monitoring the European sovereign debt crisis focused on the vote in Slovakia to approve the region's rescue fund.
The kiwi dollar was little changed at 78.17 US cents at 8am after falling as low as 77.52 cents overnight from the 78.21 cents at 5pm yesterday.
Investors are waiting to see if differences in the coalition government of Slovakia will stop it from becoming the last of the euro zone's 17 members to approve changes to the 440 billion euro European Financial Stability Facility.
The uncertainty over this has halted a rally in equity markets this week in response to reassurances from the leaders of France and Germany, the two most powerful European economies, that a comprehensive plan will be put in place to resolve the Greek financial crisis and any contagion from it in the European banking system.
The world continues to wait to see if European countries can sort their finances out and restore confidence in their regional financial framework.