KEY POINTS:
The New Zealand dollar hovered above its recent near-two-year low after it was caught up in moves to dump the Australian dollar and euro today.
By 5pm, the kiwi was at US66.29c, about 20 points above its session low but well below its US68.20c level at the same time yesterday.
Against the aussie, the kiwi had risen to A82.40c from A82.06c late yesterday afternoon, but it eased to 0.4705 euro from 0.4732.
"Certainly it still looks soft on the back of the weak aussie and strong US dollar. It's a complete turnaround from yesterday," one dealer said.
"Basically today it's been more the sell-off in the euro and the aussie which has brought the kiwi down with it."
Starting a volatile few days, the kiwi hit US65.90c on Friday for the first time in 22 months as investors sold the currency in favour of others considered less risky.
But the currency rose sharply early yesterday in reaction to the United States government bailout of mortgage finance companies Fannie Mae and Freddie Mac.
Today, the US dollar reached a one-year peak against a basket of currencies after the US government move, considered a positive step in staving off wider financial and housing market weakness.
Currency rates:
5pm today 5pm yesterday
NZ dlr/US dlr US66.29c US68.20c
NZ dlr/Aust dlr A82.40c A82.06c
NZ dlr/euro 0.4705 0.4732
NZ dlr/yen 71.13 74.20
NZ dlr/stg 37.76p 38.06p
NZ TWI 63.45 64.55
Australian dollar US80.38c US83.08c
Euro/US dollar 1.4088 1.4407
US dollar/yen 107.32 108.78
- NZPA
