Key Points:

The New Zealand dollar regained US75c at the close today as credit crisis concerns, that had taken it to a four-week low overnight, eased.

It had fallen below US73.70c as the US currency rebounded from an all-time low against a basket of major currencies. But the kiwi recovered to open the local session at US74.26c and by the close had hit US75.08c compared with US74.90c at 5pm on Friday.

ANZ bank today said the NZ dollar had a heavy long weekend, being easily knocked from a recent resistance point of US75.50c.

The big fall on Wall Street on Saturday NZ time, was what knocked the kiwi down. Although the NZ market responded belatedly to that today after the holiday weekend, other markets rebounded and that gave carry traders fresh confidence.

Asian equities edged higher today, with Japan's benchmark Nikkei share average rising around 0.3 per cent and China's benchmark stock index gaining around 0.2 per cent

The kiwi gained against all currencies.

"The market is stuck between people trying to sell on rallies and others looking to buy on dips," said one dealer.

In the lead up to the Reserve Bank's interest rate review on Thursday the market would be watching developments in the US for direction in local markets, ANZ said.

That meant volatility was likely to remain elevated.

Bank of New Zealand currency strategist Danica Hampton said the NZ dollar was the worst performing major currency last week. It fell 2.4 per cent against the greenback, more than 5 per cent against the yen and nearly 3.8 per cent on a trade weighted basis.

The kiwi closed at A84.242c against its Australian counterpart, having been at a six-week low of A83.50c yesterday early afternoon, and at A83.72c at 5pm Friday.

Reuters currency rates
5pm today 5pm Friday
NZ dlr/US dlr US75.08c US74.90c
NZ dlr/Aust dlr A84.42c A83.72c
NZ dlr/euro 0.5290 0.5235
NZ dlr/yen 86.11 86.20
NZ dlr/stg 36.88p 36.55p
NZ TWI 70.23 69.98
Australian dollar US88.98c US89.37c
Euro/US dollar 1.4196 1.4300
US dollar/yen 114.63 115.12

- NZPA