The New Zealand dollar is higher against the greenback as the United States currency posted its worst one-day decline against the euro in six months.
Weak US economic data and uncertainty over the future of troubled investment bank Lehman Brothers prompted investors to lock in recent steep gainsfor the US dollar.
Worries about Washington Mutual, the largest US savings and loan institution, also added to selling pressure on the greenback after the bank projected further write-downs.
By 8am today the NZ dollar was buying US66.43c, having reached around US66.90c on Saturday morning, from US65.37c at 5pm on Friday.
On Thursday night the kiwi had dropped to a two-year low against the greenback around US64.35c in the wake of the Reserve Bank's larger than expected half a percentage point cut in interest rates that day.
ANZ bank said today that while the interest rate cut received plenty of attention, the global backdrop appeared to be having the bigger say on the NZ dollar for now.
The reversal of recent US dollar strength left the kiwi in a strong position to start the week, ANZ said.
Against the euro, the NZ dollar eased to 0.4645 by 8am today from 0.4666 at 5pm yesterday.
The kiwi was also down a little against the Australian dollar, which rallied strongly against the greenback, slipping to A81.18c at the local open from A81.40c on Friday evening.
Against the yen, the kiwi was barely changed at 70.14, while the trade weighted index was 62.84 at 8am today from 62.69 at 5pm on Friday.
