The New Zealand dollar tested support yesterday at its lowest level in a month against the greenback, as investors once again shunned risk amid growing fears about the euro zone's debt crisis.
The NZ dollar was plumbing lows as the domestic session ended and it was not alone as the Australian dollar was also weak yesterday.
The NZ dollar was at US74.83c at 5pm, from US75.05c at 8am and US75.95c at 5pm on Friday. It had dropped to US74.75c on Friday night.
"European sovereign risk remains centre stage for all markets and the euro remains under steady selling pressure as a result," Rankin Treasury said.
The NZ dollar fell more than US3c last week on worries about Europe and also after a surprise downgrade of New Zealand's credit rating outlook by Standard & Poor's.
The local currency remained weak even though confidence rose in the November National Bank business outlook survey released yesterday.
News that New Zealand's annual trade balance showed a surplus above $1 billion for the first time in 16 years in the year to October also did not lend support yesterday.
Figures from Statistics New Zealand yesterday show the country had a trade deficit of $319 million in just the month of October, amounting to 8.7 per cent of the value of exports, compared to with an average deficit of 29 per cent of exports over the previous five October months.
The NZ dollar was at €0.5653 at 5pm from €0.5698 at the same time on Friday. It was at 62.92 from 63.58 at 5pm on Friday and at A77.62c from A77.90c.
The trade weighted index fell to 68.10 from 68.72.
- NZPA
Kiwi hits low over euro crisis fears
File photo / Dean Purcell
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