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NZ Dollar Plunges As Further Bad Financial News Comes Out Of US

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Nov 11 NZPA - The New Zealand dollar fell rapidly early today against the greenback from around US60.25c to about US58c.

The kiwi then recovered a little ground to be buying US58.33c at 8am, down from US59.67c at 5pm yesterday.

The pattern was similar against the European and Japanese currencies.

From near 60 yen the kiwi screamed down through the early morning hours to a low around 56.50 yen.

The NZ dollar's dive against the euro took it from 0.4670 to drop below 0.4540.

BNZ currency strategist Danica Hampton said that yesterday there was widespread optimism about the $1 trillion Chinese government fiscal package, with Asian equities surging higher and European stocks also rising.

But overnight a wave of bad financial news out of the United States saw US equities erase earlier gains.

The slide in US equities triggered a wave of selling of currencies against the yen, and the NZ and Australian dollars got caught up in that, she said.

Also, an article in the Australian Financial Review warning that the Australian economy was headed for recession added further downward pressure.

By 8am the kiwi was at 0.4566 euro from 0.4638 at 5pm yesterday, and down to 57.19 yen from 58.95.

Against the aussie, the kiwi was down to A86.87c from A87.17c. The trade weighted index was 58.95 at 8am from 60.00 at 5pm.

NZPA WGT mjd nb

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