NZ dollar lays low in wake of aftershocks
The New Zealand dollar spent most of the night in a narrow band against the greenback near lows reached after yesterday's big Christchurch aftershocks, although it managed a modest rise early today.
At 8am the NZ dollar was buying US81.51c, up from US81.34c at 5pm yesterday and after having been around US82.15c before the first of the aftershocks hit.
The Kiwi's fall was widely seen as likely to delay the OCR rise flagged for December.
BNZ strategist Kymberly Martin said the NZ dollar gained a small boost from US dollar weakness early today.
Against other currencies, the kiwi had been unable to make any significant comeback overnight after yesterday's falls.
ANZ bank said euro strength had managed to drag the NZ dollar higher. Overnight buyers around previous resistance levels had held the base.
The kiwi edged down to 0.5655 euro at 8am from 0.5671 at 5pm, and slipped to 65.35 yen from 65.51.
Against the Australian dollar the kiwi was down to A76.88c at 8am from A77.17c, with the trade weighted index down to 70.23 from 70.34 at 5pm.
The euro fell to a record low against the Swiss franc, with more losses likely as disagreement among policymakers over how to solve Greece's debt crisis unsettled investors and boosted the safe haven allure of the franc.
But the euro managed to gain versus the US dollar, helped by central bank demand and a recovery in US stock prices. Concerns about a stalling US economic recovery and a ballooning budget deficit also weighed on the greenback.