The New Zealand dollar weakened against the greenback as global equity markets extended their slide and data showed the euro zone economy continues to shrink, eroding the appeal of growth linked assets such as the kiwi.
The New Zealand dollar fell to 80.92 US cents from 81.22 cents at 5pm in Wellington yesterday. The trade-weighted index slipped to 72.75 from 72.88.
Stocks fell on Wall Street after Wal-Mart gave guidance that disappointed investors. The Dow Jones Industrial Average was down 0.3 per cent and key benchmarks in Europe fell. Data showed that the euro zone's gross domestic product dropped 0.1 per cent last quarter and a Reuters poll of more than 70 economists predicted the bloc's new recession will extend until the end of the year and 2013 promises little better than stagnation.
"Another gloomy night in US and European equity markets has dented sentiment towards high risk currencies like the NZD," said Mike Jones, currency strategist at Bank of New Zealand.
The kiwi fell to 63.35 euro cents from 63.72 cents and fell to 51.05 British pence from 51.21 pence.
