23 Jan 2010

New Zealand dollar continues fall

7:40 am on 23 January 2010

The New Zealand dollar hovered near a three-week low on Friday.

Since Monday, the currency had dropped 3 cents against the US dollar, to trade at US 71.30 cents.

Global sharemarkets have plunged as concerns about Chinese inflation and new US banking regulation weighs on confidence about economic recovery, reducing appetite for riskier currencies, like the New Zealand dollar.

Westpac currency strategist Imre Speizer says the kiwi could fall as low as US 66 cents in the coming months, but will rise later in the year due to stronger fundamentals in the New Zealand economy and the expectation of higher official interest rates.