http://nz.biz.yahoo.com//091103/3/fh75.html

The New Zealand dollar bounced around overnight but by 8am was little changed from its level at the local close against several key currencies, although the kiwi did make a small gain against a broadly weaker yen.

By the local open the NZ dollar was buying US72.60c, having ranged between about US73c and US72.15c, having been at US72.68c at 5pm yesterday.

BNZ Capital strategist Mike Jones said the NZ dollar spent the first part of the night grinding higher as an announcement from Bank of America that it will pay back bailout funds provided a backstop for investors' risk appetite.

Upbeat Eurozone retail sales data added to the positive mood, with the kiwi flirting with the US73c level, but that high proved short-lived, Mr Jones said.

While the European Central Bank kept rates on hold as expected at 1 percent and outlined gradual plans to wind back its liquidity programmes, President Jean-Claude Trichet was not quite as hawkish as expected.

The associated paring in the euro's gains against the greenback paved the way for a late strengthening in the US dollar, with weak US services data adding to the US dollar's safe haven appeal, Mr Jones said.

Against the strengthening US currency, the NZ dollar soon wandered back to similar levels to those of 24 hours earlier, around US72.20c.

By 8am the NZ dollar was at 0.4810 euro, from 0.4816 at 5pm, while against the Australian dollar, the kiwi was back to the level of the local close at A78.16c.

But the kiwi did make a small gain against the yen, lifting to 64.06 at the local open from 63.86 at 5pm. The yen fell broadly for a second straight session, as worries persisted Japan may move to weaken its currency.

The trade weighted index was little changed on 64.37 at 8am from 64.38 at 5pm.