The New Zealand dollar hit a new low of 39.59USc yesterday, but closed at 40.01c after an orderly day's trading.
It fell after the Commerce Commission declined Royal Dutch Shell's application to take over Fletcher Energy. It was trading at 40.40c before the announcement on Thursday.
Its previous low was 39.90c, set on October 4.
A currency dealer said the kiwi had been in reasonable demand against the aussie yesterday. "The kiwi was a lot more orderly than it has been in the last month or so," he said.
"I guess the aussie was coming under a little bit of pressure - the kiwi was sitting on its all-time lows and the aussie looked like it would check out its new all-time lows, which it did, hitting 52.67USc.
Finance house HSBC noted that US stock markets were continuing to tumble and that, combined with tension in the Middle East and the threat of intervention in the euro, was painting a dark picture for the US economy. "All of this does help to paint a better picture for the kiwi," HSBC said in its daily commentary. "However, we do believe that the NZ dollar will underperform all other currencies and with the Government and the Commerce Commission continuing to block foreign investment in New Zealand, it will certainly remain a second choice ... "
- NZPA
<i>Currency:</i> Kiwi claws back from brink
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