KEY POINTS:
The dollar has been in free fall overnight, dropping two cents against the US dollar. Deals are being done at around 76.4 US cents to the dollar.
The dollar was at 76.2 cents against the greenback when the Reserve Bank starting selling the kiwi six weeks ago in an effort to reduce its value.
The dollar continued to rise, however, and reached a post float record of 81.6 US cents early this week.
On Thursday Reserve Bank governor Alan Bollard announced that interest rates would rise another quarter of a per cent and he subsequently commented that four successive hikes in the official cash rate might be enough to dampen economic growth.
New Zealand's interest rates are now the highest in the industrial world with the OCR at 8.25 per cent.
There is also turmoil on international markets, following poor economic data coming out of America including tougher conditions in credit markets, the housing market and a jump in oil prices.
The Dow Jones Industrial Average is down 95 points to 13,380. The New Zealand stockmarket closed 80 points lower last night to stand at 4,246.
- NEWSTALK ZB
