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New Zealand Dollar Off Lows

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Oct 9 NZPA - The New Zealand dollar recovered from another dramatic plunge overnight but is expected to remain under pressure as investors avoid risky investments.

The NZ dollar was trading at US60.85c at 5pm, having recovered to US61.12c by 8am after an overnight plunge to a five-year low of US57.75c. It was at US62.47c at 5pm yesterday.

"The NZ dollar/US dollar has plunged dramatically over the past 24 hours," Bank of New Zealand currency strategist Danica Hampton said.

"Selling appeared to be triggered by Japanese margin accounts, but soon became more widespread."

Today the market was on central bank watch as central banks around the world cut interest rates. The Reserve Bank of New Zealand did not cut rates but it issued a statement saying it is staying in very close touch with banks and the government.

It also moved to allow banks to use mortgage back securities in dealings with it.

The Australian dollar also had a tough night sliding to US67.64c from US71.15c and was US69.06c at 5pm today.

Against the Australian dollar the NZ dollar was A88.10c at 5pm from A87.70c at 5pm.

The kiwi was at 0.4448 euro from 0.4590, and 61.45 yen from 63.30.

The trade-weighted index was down from 61.23 to 59.95.

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