The New Zealand dollar was unable to make up much ground during today's session after slipping to its lowest level in a month against the greenback, feeling the effects as the European sovereign debt crisis kept investors wary of risk.
The kiwi dropped below US74.30c early today, but recovered toUS74.37c at 5pm, still half a US cent lower than its level late yesterday afternoon.
Against a soft aussie, the kiwi eased to A77.40c from A77.62c at 5pm yesterday.
The kiwi firmed against the under-fire euro to 0.5675 from 0.5653, but was a touch weaker against yen and sterling.
The trade weighted index was at 67.90 from 68.10 yesterday.
The euro made small gains today after being savagely sold off recently on fears about the levels of sovereign debt, and inability to fund it, in Europe.
The euro has slumped 6 per cent against the US dollar this month.
The New Zealand dollar is a risk-sensitive asset, and the uncertain outlook over European debt has sent investors to so-called safe-havens.
An 85 billion euro ($149.5 billion) bailout package for Ireland has been a success, but failed to restore confidence as investors speculated on the risk spreading to Italy, Portugal and Spain.
US shares declined less overnight than European stocks, indicating that investors may be moving funds out of Europe and into the US, one foreign exchange manager said.
"There are just so many worries over the euro zone. The euro will test the US$1.20-1.25 area this month," said Hideki Amikura of Nomura Trust and Banking.
