27 Feb 2013

Dollar down after Italian election result

2:28 pm on 27 February 2013

The New Zealand dollar is at its lowest point since early January, prompting predictions it could go lower still.

It has fallen nearly two cents in the past 24 hours, from about 84 cents to a little more than 82 cents.

Westpac Bank market strategist Imre Speizer said it was the largest 24-hour drop so far this year and it happened largely because the deadlocked Italian election result has unnerved global markets.

Mr Speizer said there are predictions the dollar could fall to about 81 cents and it won't stop there if overseas traders who bought large amounts of the kiwi start a rush to sell it.

He said the economic outlook for New Zealand is not damaged by changes in the dollar.