The New Zealand dollar continued its gradual descent from last night's four-month highs against the US dollar, as a credit downgrade on Greece weighed on equity markets and currencies around the world.By 5pm, the kiwi was at US69.30c, almost unchanged fro
The New Zealand dollar continued its gradual descent from last night's four-month highs against the US dollar, as a credit downgrade on Greece weighed on equity markets and currencies around the world.
By 5pm, the kiwi was at US69.30c, almost unchanged from its level late last yesterday afternoon but unable to match its overnight high above US70.20c.
Against the aussie, the kiwi was at A80.92c, again just a touch above its level late yesterday.
Moody's cut Greece's credit rating to junk status and said the country faced substantial risks, although analysts said most investors had anticipated the move, which allowed them to focus instead on stronger-than-expected euro zone industrial data.
"Once that was out of the way, it was pretty much just a small dribble off. It's been a very slow, gradual move down on the day," said Westpac senior market strategist Imre Speizer.
There was very little reaction to minutes released today by the Reserve Bank of Australia, which said that household debt levels across the Tasman were sustainable.
The kiwi was a touch weaker against the euro and yen, and significantly weaker against sterling. The trade weighted index fell to 67.19 from 67.30 late yesterday afternoon.
The kiwi still had some room to fall before getting into real trouble by breaking below US69c, Mr Speizer said.
The currency's moves overnight depended on what direction global equities took.
The euro, which has made a solid recovery from last week's four-year low of $US1.1876, was at $US1.2228, below its session high on concerns about Europe's debt problems.
