KEY POINTS:
The New Zealand dollar slipped to a 10-1/2-month low against the greenback overnight, while also getting to a four-week high against its Australian counterpart.
The kiwi showed little reaction to the decision early today of the Federal Reserve to leave US exchange rates unchanged, with its target for the federal funds rate, the interest that banks charge each other, at 2 per cent.
Overnight the NZ dollar dipped to around US72.20c, but by 8am was buying US72.61c - the same level as at yesterday's local close. It has fallen from around US77.50c in the past three weeks.
In contrast, the kiwi moved from A78.63c at 5pm yesterday to A79.26c against the aussie, peaking around A79.45c.
The overnight rise against the Australian currency came after the Reserve Bank of Australia left that country's official rates unchanged at 7.25 per cent but said there was room to move to a less restrictive stance, amid signs that domestic demand is slowing.
Bank of New Zealand currency strategist Danica Hampton said steady demand for the NZ dollar against the aussie overnight had provided something of a prop for the kiwi against the greenback.
The NZ dollar had also made a small overnight gain against the euro, opening locally at 0.4696 from 0.4674 at 5pm, while against the yen the kiwi was at 78.58 by 8am from 78.54. The trade weighted index was 65.73 at 8am from 65.53.
The US dollar jumped to a six-week high versus the euro overnight, ahead of the Fed's rate announcement, as the price of crude oil slumped.
The greenback's gains were pared after the Fed decision was released.
- NZPA