Wellington, Nov 23 NZPA - The New Zealand dollar reached a two-week low against the greenback as risk tolerance fell and investors cut exposure to assets and currencies perceived as higher risk.
By 8am today, the kiwi was buying US72.47c, down from US72.95c at 5pm on Friday. According to Reuters data, the NZ dollar briefly dipped below US72c early on Saturday.
The NZ dollar also fell to its lowest level in around two weeks against the yen and the euro.
At today's local open the kiwi was at 0.4874 euro, having dipped to 0.4850, from 0.4889 at Friday's local close.
The NZ dollar was also down to 64.38 yen at 8am from 64.86, having briefly slipped below 64 yen.
Against the Australian dollar, the NZ dollar fell to a week low of A79c and at today's local open was at A79.22c from A79.40c at 5pm on Friday. The trade weighted index dropped to 64.80 at 8am from 65.12 at 5pm on Friday.
Andrew Wilkinson, senior analyst with Interactive Brokers in Greenwich, Connecticut, said some investors "are starting to get cold feet over the health of asset market rallies, taking the line that stocks have come too far too soon and that they should -- if only for safety's sake -- perhaps hold onto their (US) dollars after all."
BNZ Capital strategist Mike Jones said nothing had really changed on the fundamental front, despite last week' sharp falls in the NZ dollar -- which was as high as the US75.20c level on Tuesday.
BNZ's short-term valuation model suggested a fair-value range of US73c to US75c for the NZ dollar against the greenback, he said.
That suggested the NZ dollar should head higher at some point, but momentum had shifted to the downside for now.
Many investors were wary of taking positions in risky currencies ahead of the end of the month and the US Thanksgiving holiday on Thursday (local time).
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