KEY POINTS:
The New Zealand dollar resumed its plunge in late trading yesterday after another volcanic session where it traded a near-3c range.
"Fear is still in the markets and volatility in the markets sky-rocketed. As a result people are ploughing out of risky assets," said Kathy Lien, chief strategist with Forex Capital Markets in New York. "[It's] causing a whole meltdown in the currency market."
On Thursday, the kiwi fell US3c in its biggest one-day drop for 21 years.
It closed the local session yesterday on US67.15c, the lowest close since November.
Its weakness against the yen was even more pronounced, plunging 5 per cent to an 11-month low, triggered by a 3 per cent fall on Japan's sharemarket.
It is likely to face another torrid session on Monday morning when more than $2.5 billion of eurokiwi and uridashi bonds are due to mature.
Against the Australian dollar, the kiwi strengthened to A85.97c from A85.60c.
- Reuters