9 Aug 2011

NZ dollar continues to fall

11:20 pm on 9 August 2011

The New Zealand dollar has fallen further against the American dollar on Tuesday.

ANZ Bank chief economist Cameron Bagrie says the fall has been sparked by incredible market uncertainty which has prompted investors to reduce risk.

Mr Bagrie says the Kiwi is likely to fall further and could easily drop below US80 cents.

Weaker stock markets and higher-than expected inflation in China saw the New Zealand dollar fluctuate on Tuesday from a low of US79.7 cents in early afternoon trade to US81.8 cents after the local market closed.

The price of oil slipped further, reflecting concerns that weak global growth could lead to a fall in demand.

Brent crude oil was trading at $US103.90 per barrel and gold was trading at $US714.04 per ounce, a new record.

Tower Trading president Anthony Neglia said the price of gold could go higher yet.