NZ dollar falls further
9:18 AM Wednesday Sep 1, 2010

The New Zealand dollar fell further overnight, following yesterday's bail out of South Canterbury Finance (SCF) and Monday's evidence of weaker business confidence.

The rate of decline eased after midnight, but the kiwi still reached a week low near US69.60c early today.

By 8am the NZ dollar was buying US69.72c, having fallen from above US71.40c on Monday morning.

Also weighing on the market was the release early today of the Federal Reserve's minutes from its August 10 meeting.

The cautious Fed report underscored fears about a slowdown in growth in the United States, the world's largest economy.

The "minutes confirm what those in the market already knew, that the recent weakening in the US economy has become worrisome and that policymakers are grappling with a possible policy response," said Win Thin, senior currency strategist at Brown Brothers Harriman in New York.

The NZ dollar was affected by South Canterbury Finance's decision yesterday to call in the receivers, resulting in the Government coughing up $1.6 billion to bail out investors.

More here.