KEY POINTS:
The New Zealand dollar posted some gains today after dropping to a two-year low in the aftermath of yesterday's half a percentage point cut in the official cash rate.
The Reserve Bank's decision to make a bigger than expected interest rate cut, down to 7.5 per cent, sent the kiwi as low as US64.35c overnight.
The rate cut made New Zealand less attractive to yield-focused foreign investors and came at a time when the US dollar was rising.
The NZ dollar recovered today to be US65.37c at 5pm, up from US65.24c at 8am and US65.15c at 5pm yesterday.
The NZ dollar got down to its lowest level in more than two years against the Japanese currency, around 68.50 yen, before moving up to 70.08 yen by today's local close.
The low-yielding yen benefited from a surge in risk aversion, which also pushed the euro and the Australian dollar down to their lowest in at least two years.
Against the euro, the NZ dollar reached a month low around 0.4625 overnight, before strengthening to 0.4666 euro at 5pm.
Against the Australian dollar the NZ dollar was at A81.40c at 5pm from A81.62c at 5pm yesterday.
The trade weighted index was 62.69 at the local close, compared to 62.63 at 5pm yesterday.
- NZPA