The New Zealand dollar fell to its lowest level in a month against the greenback, as a worsening European sovereign debt crisis kept investors wary of risk.The kiwi briefly dropped below US74.30c early today. By 8am it was at US74.50c, down from US74.83c
The New Zealand dollar fell to its lowest level in a month against the greenback, as a worsening European sovereign debt crisis kept investors wary of risk.
The kiwi briefly dropped below US74.30c early today. By 8am it was at US74.50c, down from US74.83c at 5pm yesterday.
BNZ markets strategist Mike Jones said a clear deterioration in the European sovereign debt crisis overnight kept risk-sensitive assets such as the NZ dollar under pressure.
An 85 billion euro ($NZ149.5 billion) bailout package for Ireland appeared to do little for sentiment, as investors worried about the risk of Ireland's debt woes spreading to Italy, Portugal and Spain, Mr Jones said.
European sovereign borrowing costs increased to fresh all-time highs in many cases, knocking European equity markets for six.
Overnight the euro slumped broadly, falling to two-month lows against the US dollar, with the NZ dollar climbing to 0.5689 euro at 8am today from 0.5653 at 5pm.
The kiwi was little changed against the Australian dollar at A77.66c and at 62.83 yen. The trade weighted index eased to 68.07 at 8am from 68.10 at 5pm.
