NZ dollar tumbles against greenback
Riak aversion reigned on world markets after disappointing data from the US and Europe.
The New Zealand dollar tumbled as risk aversion reigned on world markets after disappointing data from the United States and Europe.
At 8am today the kiwi was buying US81.62c, down from US82.25c at 5pm and US1c down from the post-float high reached on Tuesday afternoon.
Investors fled stock markets in the United States and poured into Treasuries after dismal US economic data.
The US dollar initially fell to a four-week low versus the euro as employment and manufacturing reports for May suggested US growth was slowing more quickly than first thought. The greenback rebounded on profit-taking in the euro, joining currency safe-havens such as the yen and Swiss franc.
"The sugar high that has buoyed the US economy over the past six months is wearing out, and there is little in economic growth or foundation to show for it," said Douglas Borthwick, a managing director with Faros Trading in Stamford, Connecticut.
The NZ dollar also fell to 66.04 yen at 8am from 66.82 at 5pm, and was little changed at 0.5692 euro.
The kiwi rose to A76.89c against the Australian dollar at 8am from A76.53c at 5pm, while the trade weighted index fell to 70.51 at 8am from 70.77.
NZPA
Thu, 02 Jun 2011
Thu, 02 Jun 2011
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NZ dollar tumbles against greenback
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