KEY POINTS:
The New Zealand dollar spent much of the night below US55c and also slipped to a seven-week low against its Australian counterpart.
By 8am today the kiwi was buying US54.95c, little changed from its level at 5pm yesterday, although it did rise for a couple of hours to peak above US55.50c around 6am before falling away again.
Against the aussie, the NZ dollar dropped to around A84.10c, its lowest level since early October. By the local open the kiwi was up to A84.66c from A85.20c at 5pm.
BNZ currency strategist Danica Hampton said a rebound in the fortunes of the Australian dollar, with real money demand noted, had pitched the NZ dollar lower once again against the aussie.
The US dollar rose against most major currencies as US stocks fell into negative territory and investors worried about a deepening global recession.
Widespread aversion to risk boosted the US dollar as investors continued to exit trades in higher-yielding assets and currencies in favour of the relative safety of the greenback.
The NZ dollar traded in a narrow range at three-week lows against the euro between about 0.4380 and 0.4340. By 8am it was at 0.4355.
The kiwi was also buying 53.06 yen at 8am, down from 53.21 at the local close. The trade weighted index was 56.15 at 8am from 56.31 at 5pm.
- NZPA
