KEY POINTS:
The New Zealand dollar rose during another tumultuous day on financial markets globally but no one was too upbeat about it given the circumstances.
United States dollar weakness was the dominant theme as the fragility of the US financial sector again weighed on investors in all markets.
Lloyd Cartwright, head of financial markets at Westpac Institutional Bank, said the real story was reduced liquidity in the market.
"There's a significantly reduced amount of liquidity in the market due to players withdrawing," he said.
Trades were being unwound and volatility was a consequence of the lack of liquidity.
By 5pm the kiwi was buying US66.46c from US65.99c at 5pm yesterday.
Economists are now starting to speculate that the Reserve Bank could cut interest rates between its regular review of rates if turmoil continues on markets.
By 5pm the NZ dollar was buying 69.40 yen from 70.03 at 5pm yesterday, and against the euro it was at 0.4631 from 0.4663.
The kiwi rose against the aussie to A83.88c by today's local close from A82.75c at 5pm yesterday. The trade weighted index at 5pm was 63.07 from 63.09.
- NZPA
