Kiwi dollar peaks above 66c

For the first time in nine months the New Zealand dollar peaked above US66c early today, but its time at that level lasted only a few minutes and it quickly fell away.

By 8am the NZ dollar was buying US65.39c - little changed from its level at 5pm yesterday - after having slid from just above the US66c peak to just under US65c before partially recovering.

The kiwi's gyrations came as the US dollar rebounded from six-week lows against the euro, after Federal Reserve Chairman Ben Bernanke gave a cautious assessment on the United States economy, reviving the greenback's safe-haven appeal.

A retreat in US stock prices earlier in a choppy trading session also dampened investors' appetite for risk, driving the yen sharply higher while pushing down higher-yielding, commodity currencies such as the Australian and NZ dollars.

The kiwi edged down against its trans-Tasman counterpart, to A80.29c at the local open from A80.51c at 5pm.

The NZ dollar was little changed at 0.4609 euro and 61.29 yen at 8am, having hit three-week highs earlier in the overnight session against both currencies. The trade weighted index slipped to 61.16 at 8am from 61.20 at 5pm.

- NZPA