Currency: NZ dollar falls below US75c
9:30AM Tuesday November 13, 2007
The New Zealand dollar fell below US75c today as investors fled risk, and it has now fallen 3.6 per cent since Friday's close.
At 8am it was buying US74.84c compared with yesterday's close of US75.43c and US77.68c on Friday.
The fall against the yen has been even more severe -- down 5.8 per cent from Friday. It is now buying 82.32 compared with 83.03 yesterday and 87.40 on Friday.
The Australian dollar was hit even harder. It was down to US88.23c from US89.50c yesterday. It plummeted around 3 US cents in the New York session. The kiwi cross rate rose to A84.80c from A84.29c.
ANZ bank said in its briefing note to clients today that market indigestion delivered a bad case of the runs yesterday and the rout continued overnight.
It said there was large scale carry trade exiting as risk aversion dominated.
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