KEY POINTS:
The New Zealand dollar fell back to around US70c today after testing below that level for the first time in 11 months last week.
By 5pm today the NZ dollar was at US70.05c, down from US70.41c at 8am. The currency, which tested above US82c this year, fell to US69.83c on Friday.
ANZ bank said there was "an unbelievable wild ride to end a turbulent week for the New Zealand dollar".
The US dollar continued to surge ahead as the market contemplated the idea that the US was the first into recession and was likely to be the first out, ANZ said.
Market focus on geopolitical issues this week should ensure last week's US dollar strength continued which, by default, would see weakness in the NZ dollar.
Against its Australian counterpart, the NZ dollar lifted to A79.22c by today's local open from A78.40c at 5pm on Friday, but was back at A78.98c by 5pm.
Against the euro it was 0.4675 by 5pm today from 0.4610 at Friday's local close.
The NZ dollar was also buying 77.08 yen at 5pm from 76.95, while the trade weighted index was 64.61 from 64.29.
Bank of New Zealand currency strategist Danica Hampton said solid demand for the New Zealand dollar against the aussie had provided some support for the kiwi against the greenback.
Looking forward, the combination of a firmer US dollar and concerns about a sharp slowdown in this country should ensure bounces in the NZ dollar against the greenback were limited.
Initial support for the NZ dollar was seen ahead of US69.85c, but a deeper pullback towards US69c to US69.50c was likely in coming weeks.
- NZPA