NZ dollar lower vs greenback amid fear on world markets

NZPA

Tuesday 9th August 2011

The New Zealand dollar has weakened against the greenback and yen as fear gripped world markets.

After Standard & Poor's cut the US credit rating at the weekend, and amid concerns euro zone debt troubles could worsen into a global crisis despite efforts to contain it, the safe haven Swiss franc and the yen soared.

The New Zealand dollar fell from US82.82c at 8am to a month low around US82.25c before regaining some lost ground to US82.51c by 8am.

The kiwi also dropped from 64.60 yen to a three-month low 63.85, then lifted to 64.13 yen at 8am.

Against the European currency, the kiwi did drop initially, from 0.5786 euro at 5pm to a month low around 0.5755, but then lifted to 0.5806 euro at 8am.

ANZ said the NZ dollar had plumbed further recent lows as equity markets continued to be crushed.

Direction today may well be guided by a raft of Chinese economic data for July out later today.

The NZ dollar did gain against the Australian dollar, lifting from A80.18c at 5pm to A80.72c at 8am, while the trade weighted index slipped to 71.62 from 71.67.

ANZ said the NZ dollar had dropped under A80c briefly overnight, only to run into support.

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