The New Zealand dollar drifted in relatively narrow ranges against a backdrop of weak equity markets and worries about the global economy.
Around 5pm the NZ dollar was at US70.31c, down from US70.69c at 8am and US70.65c at 5pm yesterday.
It had pushed as high as US71.25c on Monday night
but drifted lower with equity markets.
ANZ bank said European and US equities had initially ground higher as mergers and acquisition activity boosted investor confidence, taking the NZ dollar along for the ride.
But that did not last, and as the equity markets reversed their gains they dragged the kiwi back under US71c.
"We are moving on risk-on, risk-off scenarios and so with equity markets weaker overnight and today risk has been taken off again," said Murray Hindley, chief currency dealer at ANZ.
He said there had been speculation of a double dip recession in the United Kingdom.
The economic data calendar was light in New Zealand this week.
The NZ dollar drifted slightly lower against the Australian dollar as investors continued to wait for the outcome of last weekend's election to become clear.
Opposition Leader Tony Abbott today pledged to ensure "a kinder, gentler" style of politics as he intensified his push to form a minority government.
The NZ dollar was little changed at 0.5559 euro at 5pm from 0.5554 at 5pm yesterday, while it was at 59.70 yen from 60.29 yen yesterday. It was at A79.17c against the Australian dollar from A79.21c yesterday.
The trade weighted index was 66.09 at 5pm from 66.23 at the same time yesterday.
- NZPA
