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NZ Dollar Falls Through Night Against Broadly Stronger US Dollar

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 16 NZPA - The New Zealand dollar continued to fall through most of the night against a broadly strengthening greenback.

The United States dollar's rise followed an expression of confidence by Russia in the greenback as the world's reserve currency.

Speaking on the sidelines of a Group of Eight finance ministers in Italy, Russia's Finance Minister Alexei Kudrin said the US dollar's role as the world's main reserve currency was unlikely to change in the near future.

By 8am today the kiwi was buying US63.13c, having dropped below US62.80c earlier as the NZ dollar continued to fall away from the week-high above US64.65c reached early on Friday.

BNZ Capital senior strategist Danica Hampton said investors were also encouraged to sell growth sensitive currencies, such as the NZ dollar, by a sharp slip in global equities.

Falls on world sharemarkets were due to questions over the speed and timing of global recovery.

While the greenback was strengthening, the single European currency fell below $US1.38 -- its lowest level in more than three weeks -- after the European Central Bank said euro-zone banks will probably need to write down another $US283 billion.

The NZ dollar moved in a narrow band between about 0.4580 and 0.4550 euro overnight to be at 0.4576 at 8am.

Against the Japanese currency, the NZ dollar fell away to 61.76 yen at the local open from 62.73 yen at 5pm yesterday, but the kiwi did strengthen against its Australian counterpart, to A79.47c from A78.97c. The trade weighted index was 60.20 at 8am from 60.44 at 5pm.

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