NZ Dollar dips on Jakarta blast news

The New Zealand dollar fell on news of bomb attacks on two hotels in Jakarta in Indonesia.

The Associated Press reported that six people were killed and 29 wounded, with a New Zealander seriously injured, in the explosions at the Ritz-Carlton and Marriott hotels.

The NZ dollar fell to around US64.30c from US64.70c when the news broke this afternoon NZ time, said ANZ Institutional Bank chief foreign exchange dealer Murray Hindley.

"Risk is back off the table," he said.

He said traders sold a range of currencies, including the Australian dollar and euro on the news.

For most of the day the NZ dollar sat around US64.75c, having recovered from a fall yesterday when credit rating agency Fitch changed the outlook on its rating of New Zealand.

"In early Asia we had the news from Jakarta and it gave up all its gains and settled near the lower end of today's range," Mr Hindley said.

The NZ dollar was trading at US64.83c at 8am today, from US63.90c at 5pm yesterday.

New Zealand Embassy staff in Jakarta have been dispatched on foot to hospitals to confirm whether a New Zealander has been seriously injured in a suspected bomb attack at two hotels today, Ambassador Phillip Gibson said.

- REUTERS reported that all the dead were at the Marriott, which was badly damaged by a car bomb attack in 2003 that killed 12 people.

- NZPA