KEY POINTS:
The New Zealand dollar recovered some ground after dropping to a three-week low against the greenback, dropping below US50.10c on Friday night.
By 8am today the kiwi was buying US50.92c, up from US50.36c at 5pm on Friday.
ANZ bank said the nudge close to US50c by the NZ dollar found profit takers and natural buying demand.
In an environment with a never-ending stream of bad news it was a little surprising that the NZ dollar had not come under further selling pressures as it remained range bound for the time being, ANZ said.
"But we see it as only a matter of time."
The US dollar fell across the board as investors sought to lock in that currency's steep gains amid growing uncertainty about the prospect of US bank nationalisation.
Traders abandoned bets that the greenback would keep rising, while fears that Washington could be forced to nationalise some of the largest United States banks unnerved investors.
The kiwi fell to its lowest level in more than a fortnight against the European currency - which surged against the greenback - early today to by buying 0.3978 euros at the local open from 0.3991 at 5pm Friday.
Against the yen, the NZ dollar was up to 47.60 at 8am from 47.37 at Friday's local close and up to A79.13c against the Australian dollar from A78.80c. The trade weighted index was 51.90 at 8am today from 51.71 at 5pm Friday.
- NZPA
