The New Zealand dollar briefly topped US77.90c against the greenback, its highest level in a month, before slipping against the US currency which gained broadly as tension in Egypt raised fears about stability in the wider Middle East and North Africa.
The New Zealand dollar briefly topped US77.90c against the greenback, its highest level in a month, before slipping against the US currency which gained broadly as tension in Egypt raised fears about stability in the wider Middle East and North Africa.
Both the US dollar and Swiss franc rallied in the overnight Friday session.
Emerging market currencies also sold off, led by the Turkish lira and the Israeli shekel as police and demonstrators fought in the streets of Cairo in protests against President Hosni Mubarak's three-decade rule.
"This could really encompass the region. Egypt is really the pivot point in the entire Arab world and has implications for things like the price of oil," said Dan Dorrow, head of research at FX advisory and execution firm Faros Trading in Stamford, Connecticut.
By 8am today the NZ dollar was buying US77.16c, having edged down from US77.27c at 5pm on Friday, and had also slipped to A77.93c against the Australian dollar from A78.09c, having briefly touched a two-month high A78.20c on Friday evening.
The kiwi rose to 0.5679 euro at 8am today from 0.5636 at 5pm on Friday, while dropping to 63.24 yen from 63.87. The trade weighted index was slightly lower at 68.93 at 8am today from 68.99 from 5pm on Friday.
ANZ expected the US dollar to remain in demand, amid safe haven buying as unrest in Egypt continued, and after data which showed growth in the US economy.
