The New Zealand Dollar dipped below US69c overnight but then strengthened through the early morning hours.
By 8am the kiwi was buying US69.76c, little changed from its level at 5pm yesterday. It had tumbled from around US70.40c before weaker than expected trade figures were released yesterday morning, although the data was seen as just part of a series of factors pushing the NZ dollar down.
The overnight dip took the kiwi to its lowest since the currency got down to around US68.20c a fortnight ago, which was the NZ dollar's lowest level against the greenback for about a year.
Bank of New Zealand currency strategist Danica Hampton said today that towards the end of the New York session a recovery in US stock markets had helped underpin yen crosses such as that with the kiwi, and the NZ dollar had rebounded off its lows against the greenback.
The US dollar scaled six-month peaks against the EURO overnight, lifted by a jump in US consumer confidence and expectations of interest rate cuts in the euro zone following weak German data that heightened concerns of a recession in the region.
The euro is down more than 6 percent this month and looking set for the biggest monthly fall since its 1999 launch.
"The (US) dollar is higher versus the euro because euro zone data confirms weakness coming out of Europe and an overall global slowdown," said Kevin Chau, a currency strategist, at IDEAglobal in New York. "The US economy is still fairly weak but the rest of the world is catching up with it."
The NZ dollar also gained on the European currency, buying 0.4763 euro at 8am from 0.4737 from yesterday's local close.
The kiwi was also up on the Australian currency at A81.56c by the local open from A81.11c at 5pm, and little changed against the yen at 76.47. The trade weighted index was 65.32 at 8am from 65.11 at 5pm.