Modest overnight gains by NZ dollar

The New Zealand dollar was struggling to hold above US74c against the greenback in early trading on the local market, a day out from the Reserve Bank's review of the official cash rate (OCR).
At 8am the kiwi was buying US74.07c, up from US73.75c at 5pm yesterday.
ANZ bank said overnight weakness in other currencies had seen the NZ dollar in demand, as equities rallied overseas amid easing oil prices and good bank profit results.
When the Reserve Bank announces its OCR decision tomorrow, most attention would be paid to its words rather than its actions, given a cut of some size was likely, ANZ said.
Many economists are expecting the Reserve Bank to reduce the OCR following last month's earthquake in Christchurch, which is estimated to have caused between $10 billion and $15 billion worth of damage.
As well as the NZ dollar's overnight lift against the greenback, it also had a modest rise against the Australian dollar -- from A72.87c at 5pm to A73.28c at 8am.
The NZ dollar also rose to 0.5324 euro at 8am from 0.5275, and lifted to 61.23 yen from 60.67 at 5pm. The trade weighted index rose to 65.45 at 8am from 65.01 at 5pm.
The US dollar rose against the euro amid fear that some euro zone states won't be able to withstand higher interest rates.
Tough inflation talk from European Central Bank (ECB) President Jean-Claude Trichet last week had pushed the euro above $US1.40, but recent credit downgrades for Greece and Spain reminded investors higher borrowing costs and a stronger currency would make it more difficult for debt-burdened countries to boost growth.