News that the Government's balance sheet was in the black for the first time since records began was not enough to stop the New Zealand currency sliding today.
The kiwi hit a six-week high of US64.44c in overnight trading and by 8.30am was buying US64.23c, having earlier dipped nearly half a cent for a short time on tsunami fears.
An earthquake measuring 7.8 on the Richter scale hit the Tongan islands overnight initially prompting a tsunami warning for Fiji and New Zealand.
The warning was later cancelled and the New Zealand dollar recovered but started drifting downwards from around 9am and by 5pm was at US63.84c, close to levels during the tsunami warning.
It kept slipping despite Finance Minister Michael Cullen telling the Canterbury Manufacturers' Association that total Government assets minus debt, including the New Zealand Superannuation Fund, were in the black for the first since 1972, when records started being kept.
New Zealand was one of seven OECD countries with positive net financial assets. As at March 31 this country's net financial assets totalled $400 million.
Dr Cullen said while the economy took a "breather" it was important the budget on May 18 continued with a "prudent approach".
He said the economy was expected to go through a year of "very flat economic growth" with inflationary pressures remaining "uncomfortably strong", and the government was set to move into cash deficits totalling around $7 billion over the next four years.
Rates:
5pm today 5pm Wednesday
NZ dlr US63.84c US64.08c
NZ dlr/Aust dlr A83.19c A83.54c
NZ dlr/euro 0.5058 0.5066
NZ dlr/yen 72.76 72.55
NZ dlr/stg 34.72 34.78
NZ TWI 63.82 63.95
Australian dollar US76.75 US76.69c
Euro/US dollar US1.2621 US1.2646
US dollar/yen 113.96 113.21
- NZPA
<EM>Currency:</EM> NZ dollar slides
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