The New Zealand dollar fell two-thirds of a cent against the greenback after the key August non-farm payrolls report showed the US economy added no new jobs in the month, prompting investors to abandon risk-sensitive assets in favour of gold and government bonds.
The New Zealand dollar recently traded at
84.36 US cents, down from 85.03 cents on Friday in New York, and fell to 72.67 on the trade-weighted index of major trading partners' currencies from 72.89 previously.
The nervous mood on global equity markets ahead of the non-farm payroll report shifted into full risk-off mode on Friday after the US employment data showed no new jobs were created in the month, well short of the 60,000 expected by a Bloomberg poll of economists.
The number was skewed by 45,000 Verizon strikers who were not counted, though that wasn't enough to detract from the headline number, with the Standard & Poor's 500 Index closing 2.5 per cent lower at 1,173.97, and Europe's Stoxx 600 Index falling 3 per cent to 231.88.
The negative mood saw risk-sensitive currencies, such as the kiwi and Australian dollars, fall as investors fled for so-called safe haven assets. Yields on US 10 year Treasury Bills fell to a historic low of 1.99 per cent from 2.13 per cent last week, while gold rose to US$1883.80 an ounce, up from US$1851.97 on Friday in New York.
