The New Zealand dollar fell today as the continuing problems in the European Union ensure that risk aversion sentiment remains in place, damping the attractiveness of the currencies related to economic growth.
The rising borrowing costs of the European nations continue to have a negative impact on investors’ willingness to buy riskier assets. On top of that, the signs of slower growth in China further reduce demand for the commodity currencies. The MSCI Asia Pacific (excluding Japan) Index dropped 2.2 percent today. All in all, the “risk off” mode continue to prevail on markets and that hurts the New Zealand dollar.
NZD/USD fell from 0.7471 to 0.7414 and NZD/JPY dropped from 57.48 to 57.17 as of GMT 11:17 today.
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