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Fragile NZ Dollar Sinks To Six Month Low Vs Euro

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 1 NZPA - The fragility of the New Zealand dollar is becoming increasingly apparent, plunging to a six-month low against the euro and a six-week low against the greenback.

ANZ bank today said concerns about New Zealand's growth prospects were beginning to weigh on the dollar.

Despite stronger United States equities overnight, the kiwi was heavy against all its major trading partners, ANZ said.

That followed on from selling pressure after the release of the National Bank's business outlook yesterday which showed firms' own activity falling to the lowest levels since 1991.

By 8am today the dollar was buying US78.58c, having dropped to around US78.45c earlier in the morning, after being as high as US80.60c around midnight Friday.

Against the euro, the kiwi dropped to near 0.4950 early today, before regaining some ground to 0.4980 by the local open.

The NZ dollar also touched a 10-day low below 78 yen against the Japanese currency, and by 8am was buying 78.38 yen.

Against the Australian dollar, the kiwi opened on the local market around 2-1/2-week lows of A86.05c. The trade weighted index was 69.86 at 8am today from 70.40 at 4.45pm yesterday.

Among the major currencies, the euro came close to a record high against the US dollar overnight, getting to $US1.5895, as higher-than-forecast euro-zone price data reinforced expectations that the inflation-focused European Central Bank will not start cutting rates soon.

NZPA WGT Reuters mjd kn

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