KEY POINTS:
The New Zealand dollar reached a week-high against the euro this morning, but eased against the greenback in thin trade.
Shortly after 8am today, the kiwi was buying US54.88c from US55.17c at 5pm on Friday. Against the euro, the NZ dollar got up to around 0.4335 before easing to 0.4317 around the local opening, from 0.4277 on Friday evening.
The greenback rose versus the euro as volatile equity markets and fears of a deepening global recession led investors to seek the US currency as a haven.
BNZ currency strategist Danica Hampton said local news continued to drag on the NZ dollar against the greenback.
There was no doubt the Reserve Bank would cut interest rates aggressively on Thursday, with BNZ believing 150 basis points was now likely.
In addition, the global slowdown continued to add downside risks to the New Zealand economy and the NZ dollar, Ms Hampton said.
Along with New Zealand, other central governments reviewing interest rates this week include Australia's, Britain's and Europe's.
The kiwi was unchanged against the Australian dollar around today's local open at A83.98c, and was little changed against the yen at 52.48. The trade weighted index was unchanged at 55.70.
- NZPA