KEY POINTS:
The New Zealand dollar plunged more than a US cent against a surging US dollar overnight.
The rise in the US dollar occurred on the back of a fall in oil prices to below US$130 ($170) for the first time in a month and after a better than expected result from JPMorgan Chase & Co increased optimism about the US banking sector and earnings season.
By 8am, the kiwi was at US76.09c, down from US77.20c at 5pm yesterday. It traded as low as US75.88c overnight.
"The world is a better place," said Tony Allen of ANZ.
The market is mindful of a Reserve Bank statement on interest rates next week. The lower oil price is helpful in the battle against inflation and once it is won interest rates can fall.
The New Zealand dollar is expected to settle back into a range between US75.30c and US76.30c today.
Against the Australian dollar it was buying A78.50c at the open, down from yesterday's close of A79.10c.
The trade weighted index eased to 67.49 from 68.16 yesterday.
- NZPA