There has been marked fall in the dollar this morning.
The kiwi is worth 69.17 US cents, down from 70.58 yesterday afternoon. The drop follows the release overnight of figures showing a drop in business confidence.
The National Bank survey shows firms are negative about their own prospects for the first time in five and a half years. Newstalk ZB business correspondent Roger Kerr says it looks like the markets have taken notice.
He says overseas players in the currency market are finally realising the New Zealand economy is slowing up. The kiwi has also fallen against the Aussie dollar, the yen and the pound.
The survey ahows a net two per cent of firms expect their activity to decline in the next 12 months. The bank says that figure is an indicator of economic growth - or lack of it.
Chief Economist John McDermott says the risks of a hard landing have increased. He cites a high dollar, increased interest rates, and margins being squeezed by rising costs as reasons for the gloom.
- NEWSTALK ZB
Dollar falls overnight
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