Currency: Dollar slides on global flu concerns

The New Zealand dollar continued to slide today as it and the Australian dollar bore the brunt of selling amid concerns of a global swine flu epidemic.

The kiwi ended the domestic session near the bottom of the day's range between US56.84-55.30c, having declined sharply from its overnight high of US57.05c.

"It's just the risk factor. It's neither been driven by offshore or onshore selling, it's just been a bit of selling and no buyers out there today," a dealer said.

"Overall, the New Zealand dollar still looks a wee bit soft and probably expect it to drift down again tonight."

By 5pm, the kiwi was at US55.40c, from US56.43c late yesterday afternoon, but was relatively steady at A79.05c against the aussie from A79.20c yesterday.

The kiwi hit a five-week low against the yen, and closed at 53.20 yen from 54.60 yesterday.

The yen hit a seven-week high against the euro and a month-high against the US dollar as investors sold out of perceived riskier currencies amid concerns about a swine flu outbreak's effects on global trade and consumer confidence.

There are 10 suspected cases in New Zealand, as well as another 56 possible cases.

"Because we're pretty open about what we've got and what's happening, we're probably a bit vulnerable to negative publicity," the dealer said.

The flu virus has killed up to 149 people in Mexico, and the World Health Organisation has moved closer to declaring it the first flu pandemic in 40 years, as more people were infected in the United States and Europe.

Currency rates:

5pm today 5pm yesterday

NZ dlr/US dlr US55.40c US56.43c

NZ dlr/Aust dlr A79.05c A79.20c

NZ dlr/euro 0.4264 0.4287

NZ dlr/yen 53.20 54.60

NZ dlr/stg 38.03p 38.62p

NZ TWI 55.43 55.12

Aust dlr/US dlr 70.08c 71.29c

Euro/US dlr 1.2995 1.3170

US dlr/yen 96.09 96.73

- NZPA