The New Zealand has fallen to an all-time low, dipping below the US 40 cent barrier for the first time this afternoon.
The kiwi plunged to just under US 39.90 cents at 3.00 pm. It has now recovered slightly, trading at just over US 40 cents.
The fall is being attributed to comments from Reserve Bank Governor Don Brash earlier today and a weakening Australian dollar.
Dr Brash told a parliamentary select committee this morning that the Reserve Bank will put its fight to keep inflation down ahead of economic growth.
Dr Brash urged union restraint and warned of stagflation - where confidence and economic growth are low but where there is a push for higher prices and higher incomes.
He says in that case the Bank would tighten monetary supply even though it would further damage growth.
The Reserve Bank today left the Official Cash Rate unchanged at 6.5 per cent.
- IRN
Dollar goes below US 40 cents
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