NZ dollar falls vs. greenback, euro on growth concerns

Monday 13th August 2012

The New Zealand dollar fell against the greenback and the euro as signs of slowing global growth added to concern that Europe's debt crisis is worsening, damping risk appetite.

The New Zealand dollar fell to 81.13 US cents at 8am from 81.31 cents at the close of trading in New York on Friday. The kiwi declined to 66 euro cents from 66.18 cents. The trade weighted index decreased to 72.99 from 73.11.

Figures on Friday showed China's exports grew a lower-than-expected 1 percent in July and economists predict data out of Europe this week will show the region's economy contracted for a second quarter. Spanish and Italian two- year notes fell on speculation the European Central Bank will no longer buy government debt.

"The kiwi fell this morning because there are a few more questions in the market about where Europe is at - that will see risk off," said Stuart Ive, currency strategist at HiFX. "This week is all about growth figures with gross domestic product and consumer price indexes out around the world."

The kiwi "will start of the week looking a little softer," Ive said.

New Zealand's food price index will be released by Statistics New Zealand this morning. That's followed by the retail trade survey for the June quarter tomorrow.

The New Zealand dollar fell to 76.79 Australian cents at 8am from 76.94 cents at the close of trading in New York on Friday. The kiwi dropped to 51.57 British pence from 51.85 pence and 63.44 yen from 63.66 yen.

BusinessDesk.co.nz

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