The New Zealand Dollar moved up around a cent overnight against a greenback sagging after recent sharp gains.
The kiwi had fallen from near US71.60c early yesterday down to US70.40c yesterday evening, then bounced back overnight to peak around US71.50c earlier today before easing to be buying US71.38c around 8am.
The greenback fell for a second day, hit by a bout of profit-taking after the recent gains, as Crude oil prices rose and stocks on Wall Street drooped on renewed worries about the financial sector.
"We are seeing a temporary respite from the US dollar strength that we have witnessed," Gareth Sylvester, currency strategist, at HiFX in San Francisco in California.
"Whenever you see the size move that we have seen, it is not untoward for the market to take a breath and have a temporary pause before the next bout of US dollar strength resumes," Sylvester added.
The ANZ bank said the NZ dollar had put in a stronger performance yesterday and overnight as dips in the currency were well sought after.
With a weaker US dollar and higher commodities, it was not surprising to see the NZ and Australian dollars gaining ground, ANZ said.
The kiwi continued its climb against the aussie, from A81.50c at 5pm yesterday, to a 2-1/2-month high near A82.20c early today before easing to A81.88c by the local open.
The NZ dollar also gained on the Japanese currency to 78.35 yen at 8am from 77.88 yen at yesterday's local close, while against the European currency the kiwi was little changed at 0.4829 euro by the local open. The trade weighted index was 66.39 at 8am from 66.05.