The New Zealand dollar eased further today along with other currencies, brought down by the euro which has been sold off over worries about the credit risks facing some European countries.By 5pm, the kiwi was at 78.66USc, down from 78.93USc late yesterday
The New Zealand dollar eased further today along with other currencies, brought down by the euro which has been sold off over worries about the credit risks facing some European countries.
By 5pm, the kiwi was at 78.66USc, down from 78.93USc late yesterday afternoon and 78.82USc earlier this morning.
"In particular, it's the US dollar rising vs the euro currency," said Westpac senior market strategist Imre Speizer. "The euro's been subject to a bit of attention with sovereign credit risks some concern at the moment, particularly in Ireland but also Portugal and Greece.
"Probably it's because there's not much else going on news-wise this week that it's garnering a bit more attention."
There has been no discussion of bailouts, as there were for Greece earlier this year, although market jitters may remain until Ireland gives details of a long-term plan to cut debt later this month.
Against the aussie, the kiwi eased to 77.66Ac from 77.99Ac at 5pm yesterday. The kiwi failed to capitalise on the euro's weakness, rising to just €0.5667 from €0.5660 yesterday, and slipped to 48.74p from 48.93p, and to ¥63.61 yen from ¥64.10.
The trade weighted index fell to 69.30 from 69.54.
The immediate outlook for the kiwi depended on how much debt concerns weigh on the euro.
"If it all fizzles out again, everything else says kiwi should resume its uptrend," Mr Speizer said.
The euro has fallen 3% against the US dollar from a 9-1/2 month high last week.
