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NZ dollar lays low in wake of aftershocks

The New Zealand dollar spent most of the night in a narrow band against the greenback near lows reached after yesterday's big Christchurch aftershocks, although it managed a modest rise early today.

At 8am the NZ dollar was buying US81.51c, up from US81.34c at 5pm yesterday and after having been around US82.15c before the first of the aftershocks hit.

The Kiwi's fall was widely seen as likely to delay the OCR rise flagged for December.

BNZ strategist Kymberly Martin said the NZ dollar gained a small boost from US dollar weakness early today.

Against other currencies, the kiwi had been unable to make any significant comeback overnight after yesterday's falls.

ANZ bank said euro strength had managed to drag the NZ dollar higher. Overnight buyers around previous resistance levels had held the base.

The kiwi edged down to 0.5655 euro at 8am from 0.5671 at 5pm, and slipped to 65.35 yen from 65.51.

Against the Australian dollar the kiwi was down to A76.88c at 8am from A77.17c, with the trade weighted index down to 70.23 from 70.34 at 5pm.

The euro fell to a record low against the Swiss franc, with more losses likely as disagreement among policymakers over how to solve Greece's debt crisis unsettled investors and boosted the safe haven allure of the franc.

But the euro managed to gain versus the US dollar, helped by central bank demand and a recovery in US stock prices. Concerns about a stalling US economic recovery and a ballooning budget deficit also weighed on the greenback.

More by NZPA and NBR staff

Comments and questions
9

Chrischuch is killing the NZ economy. Time for john key to ditch the dreadul place and not bother rebuilding. It's sucking up too much cash and a 7 mangintude earthquake for Christchuch is on the way. Only the VERY stupid still decide to live there now!

TOM PHD - clearly you are a fool, most prrobably a fool living somewhere up North with the rest of the dole bludgers. Get a life and grow up.

After laying off twenty staff in last few weeks due to the high NZ dollar I would suggest a fall of one cent isnt actually "plunging"

More than 10% is a 'plunge'. Less than 1% is not.

Hey this is good at least Bollard wont put the OCR up now.. Yay poverty... For NZ

Using the word "plunging" in this article headline is nothing more than link-baiting.

But that's what we have come to expect from bloggers these days.

Man made earthquakes and you are going to hell. Nikola Tesla caused world record 47ft uplift earthquakes, avalanches and tsunamis in Alaska during September 1899 after first causing a man-made earthquake in Manhattan so saith The Lord God. -Biblical Prophet Watch me make earthquakes http://tinyurl.com/cnnzisgay

Who wrote that heading? Certainly no grammar whiz.

CHC is a good location for multi level un-reinforced concrete and glass prisons.