2 Jun 2011

NZ dollar slips against US currency

9:33 pm on 2 June 2011

The New Zealand dollar slipped against its American counterpart on Thursday, falling from record highs earlier in the week.

The kiwi dropped almost 1 cent by 10am on Wednesday to US81.4 cents, before recovering to US81.6 cents by midday.

Analysts say the fall was due to weaker data signalling the global economic recovery is faltering, but they are confident the currency will continue to appreciate, due to rising global commodity prices.

BNZ currency strategist Mike Jones says the dollar could reach a record US85 cents.

US stocks slumped more than 2% in their worst day in more than two months.

On Tuesday, the dollar reached US82.6 cents - its highest level since it was floated in March 1985 - before slipping back.

The day before, it had passed US82.15 cents - which at that point was its highest post-float level.