The New Zealand Dollar had an up day as the US dollar retreated from six-month highs and as Japanese investors reflected that maybe New Zealand interest rates were not that bad.
By 5pm today the kiwi was buying US70.87c from US70.58c at 8am, which was up strongly from US69.75c at 5pm on Friday.
After "swift, sharp moves" lower, antipodean currencies could be expected to take a breather, ANZ said.
But while those currencies could drift higher this week, the overall trend remained down. The greenback remained in favour, which by default meant a lower kiwi and aussie.
The US dollar had jumped to a six-month high against the EURO, buoyed by another drop in oil prices and growing views the US economic slowdown may be bottoming.
But it slipped today as oil prices rebounded and the confidence about the economy dissipated.
"Liquidation of Japanese retail traders' positions saw the NZD plunge in the middle of last week, but the equally smart recovery suggests that appetite for yield remains," Westpac said.
The kiwi also rose against both the euro and yen, closing locally today at 0.4806 euro from 0.4722 at 5pm on Friday, and at 78.10 yen from 76.86. The trade weighted index was 65.98 at 5pm from 65.05.