Kiwi dollar slips overnight

After recovering yesterday from a bout of risk aversion triggered by Dubai's financial woes, the New Zealand dollar fell away again overnight.

The kiwi fell to US71.42c by 8am from US72.11c at 5pm yesterday, even as the greenback slipped against the euro as easing concerns about Dubai's debt problems and an upbeat United States regional business activity report diminished the US currency's safe-haven allure.

In its morning briefing, ANZ said that while the NZ dollar had not been able to stay above US72c, it had not backed off much overnight.

Having survived yet another risk aversion event, at this point, the NZ dollar should find itself garnering support from across the Tasman, ANZ said.

The Reserve Bank of Australia was expected to lift Australian interest rates 25 basis points to 3.75 per cent at 4.30pm (NZT) today, and that should provide support indirectly to the NZ dollar.

At today's local open, the kiwi was down to A78.15c from A78.49c at 5pm.

The NZ dollar also fell to 0.4760 euro and 61.58 yen at 8am, from 0.4784 euro and 62.47 yen at the local close. The trade weighted index was down to 63.45 at 8am from 63.92 at 5pm.

- NZPA