KEY POINTS:
The New Zealand dollar dropped below US66c for the first time in 22 months soon after 10am today as worries about the health of the global economy continued to weigh on the currency.
The kiwi plunged through the early hours of the day, having been as high as US68.80c around 1am.
After getting down to about US65.95c the NZ dollar reversed and rose sharply to be around US66.80c shortly before 11am.
Bank of New Zealand currency strategist Danica Hampton said escalating concern about the health of the global economy, heavy losses in global equities and risk aversion had prompted selling of the kiwi.
Today, the risk was that Asian equity markets would fall dramatically, which could see more NZ dollar selling, she said.
- NZPA
