The New Zealand dollar rose almost a cent against its US counterpart early on Thursday, reversing sharp falls of the day before.
A surprise move by China's central bank to lift the cost of borrowing and news the New York Federal Reserve was part of a group looking to force Bank of America to buy back billions of mortgage bonds spooked investors on Wednesday, prompting them to flock to less risky currencies such as the US dollar.
Those fears have eased somewhat, and the kiwi was at 8.30am on Thursday trading at 75.46 US cents.
Westpac market strategist Imre Spiezer says the future direction of the New Zealand dollar will be influenced by any US central bank announcement at its next meeting on 3 November on whether it will print more money.
