The New Zealand dollar slipped to an almost six year low against US currency on Friday before recovering slightly.
The New Zealand currency has fallen about 6% against the US dollar this week, as continued global jitters dents investor appetite for risk.
In early trading on Friday, it dipped below 52 US cents for the first time since December 2002 but recovered slightly to just above 53 US cents.
The slump followed bad news on Wall Street with shares plunging on fresh concerns over the financial sector and uncertainty over a bailout for US car makers.
The fortunes of the New Zealand currency are seen as closely pegged to equity markets, widely viewed as a barometer of risk appetite.
The Bank of New Zealand backs this view, saying on Friday that the New Zealand dollar remains a hostage to global events.
