NZ dollar falls almost 1 US cent
Fri, 29 Jun 2012 9:40a.m.
The New Zealand dollar fell almost one cent against the greenback as markets await how the European Union summit in Brussels will address the region's growing debt crisis.
The New Zealand dollar fell to 78.72 US cents just before 8am from 79.49 cents on Thursday at 5pm.
The trade weighted index decreased to 71.61 from 72.05.
The two-day summit is focused on helping Spain and Italy whose borrowing costs continued to soar, with leaders under pressure to stop the crisis spreading.
Policymakers are discussing a plan for economic integration within the region.
The blueprint suggests common banking supervision and deposit insurance and a "criteria-based and phased" move toward joint debt issuance. It also imposes upper limits on budgets and debt levels of nations that use the euro.
"The kiwi crashed back down to Earth last night as investors remained focused on the summit - it undermined risk sentiment over the last 24 hours," said Mike Jones, market strategist at Bank of New Zealand.
The kiwi fell to 63.24 euro cents from 63.52 cents overnight.
In the world's largest economy, the US, gross domestic product rose at a 1.9 per cent annual rate in the first quarter, the Commerce Department said.
The pace of expansion was well below the 3 per cent increase in the fourth quarter.
The New Zealand dollar fell to 78.41 Australian cents at 8am from 78.57 cents at 5pm on Thursday and increased to 62.56 yen from 63.15 yen.
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