The New Zealand dollar drifted lower against the greenback, having tumbled yesterday after credit rating company Standard&Poor's changed the outlook on the country's long-term currency rating.The long-term foreign currency credit rating was affirmed a
The New Zealand dollar drifted lower against the greenback, having tumbled yesterday after credit rating company Standard&Poor's changed the outlook on the country's long-term currency rating.
The long-term foreign currency credit rating was affirmed at AA plus but the outlook was changed to negative from stable. The outlook change implies a one in three chance of downgrade in the medium term.
Within a period of about 20 minutes after 4pm yesterday, the NZ dollar fell around 1c to US77.30c, and by 8am today had slipped further to US77.10c.
BNZ markets strategist Mike Jones said real demand had sought the dip in the NZ dollar yesterday evening, with some technical traders also keen buyers at times.
The NZ dollar recovered through the London morning, reflecting broader market sentiment, but the New York session had been a different kettle of fish.
A ratings agency had again been a catalyst, with Moody's Investors Service saying it may lower the credit rating of Ireland by more than one level.
The NZ dollar did rise overnight against the Australian and European currencies, lifting to 0.5674 euro at 8am today from 0.5627 at 5pm yesterday, and to A78.31c from A77.97c.
The trade weighted index was 69.11 at 8am from 69.08 at 5pm, while the kiwi slipped to 64.30 yen from 64.59.
The euro slumped broadly as worries about how a bailout of Ireland will be implemented doused earlier investor optimism and failed to ease fears about the finances of other indebted euro zone countries.
