The New Zealand dollar tried to make up lost ground during the day after a poor start to the week's trading.
At 5 pm the kiwi traded at 41.79USc from 42.38USc at Friday's local close.
Tim Robinson of Deutsche Bank said investors were holding back to see how Wall Street would fare overnight, but the kiwi had caught up a little yesterday.
"Basically the kiwi started very soggy, and a little bit of supply came into the market ... It looks like the market was caught a bit long and was not happy with it. Bonds came back as well."
Investors are unsure about where to put their money, but New Zealand certainly is not considered a safe haven.
"People are saying, 'I want to reduce positions and get out of my risk, on my world bond index and various indexes what weighting has New Zealand', and it's negligible.
"So they say, let's square that up, get me out - it's just getting out of all the stuff they don't know, don't have a really firm view about, and New Zealand and Australia have both been hit by that."
However Mr Robinson said the kiwi was likely to start regaining ground in the medium term.
- NZPA
<i>Currency:</i> Soggy kiwi slides under 42USc
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