8 Oct 2008

NZ dollar falls 4c against Greenback

8:04 am on 8 October 2008

A fall of four cents by the New Zealand dollar against the US dollar overnight is described as the biggest since the currency was floated in 1985.

The kiwi fell to a four-year low of just under US62 cents at 8am on Tuesday before rallying to US64c at 10.30am.

However, BNZ currency strategist Danica Hampton says the movement is not unexpected, given the current volatility in global financial markets.

Radio New Zealand's economics correspondent says the US dollar has rallied as Europe's economic woes have grown and investors seek safety in the liquidity of the world's biggest currency.

In the currency markets: at 12.50pm on Tuesday, the New Zealand dollar was trading US63.22 cents, 87.61 Australian cents, 36.27 pence, 64.19 yen and 0.4677 euro. The Trade Weighted Index was at 61.96.