The New Zealand dollar slowly recovered its footing during the day, after hitting its lowest level since August 10.
The kiwi was at 69.69 at 5pm, after dipping below US70c overnight, reversing of a week of gains since it topped US71c on Monday.
BNZ currency strategist Sue Trinh said: "The kiwi has actually held up quite well considering the carnage its seen in the past 36 hours."
She said the recovery had been driven by a very steady demand for kiwi against the aussie dollar.
"That cross rallied from around A92.45c to A92.64 on the day," Ms Trinh said.
The kiwi was at A92.19c at yesterday's close.
It also continued to perform well on the other crosses, climbing to 0.5725 euro (0.5707), 0.8864 Swiss francs (0.8859), but was flat against the pound at 38.84 pence, and lower against the yen at 76.95 yen (77.23).
The US dollar was the star of the show overnight, climbing to its highest in two weeks against the euro which failed to hold a key support level, allowing the greenback to extend gains for a fifth day.
Economic data released on Thursday had little impact on currency markets despite a strong showing from the Philadelphia Fed's business activity index, which showed an unexpectedly big jump to 17.5 in August from 9.6 in July.
Analysts had expected the index to show a rise to 12.3.
In Wellington, the euro fell to US$1.2169 (compared to US$1.2284 at yesterday's local close), while the greenback was buying 110.47 yen (110.15 yen).
The Australian dollar fell to US75.25c (US76.05c).
On a trade-weighted basis the kiwi was a touch lower at 70.33 (70.38). The monetary conditions index was at 1046 (1049).
On the money market, 90-day bank bill yields were steady at 7.04 per cent, July 2009 bond yields were down at 5.77 per cent (5.80), as were the April 2015s at 5.73 per cent (5.77).
- NZPA
<EM>Currency:</EM> Kiwi on the road to recovery after 'carnage'
AdvertisementAdvertise with NZME.