The New Zealand dollar fell to its lowest level since March 28 as global equity markets slumped on concern about how the European debt crisis is playing out.
The crisis is preoccupying investors but they are also waiting for an interest rate decision by the Reserve Bank of Australia due
late afternoon New Zealand time.
The kiwi dropped to 75.66 US cents at 8am from 76.20 US cents at 5am. It had rallied from 75.81 US cents at 5pm yesterday.
"It is basically another move to safe havens. US Treasuries have been aggressively bought," said Alex Sinton, senior dealer at ANZ New Zealand.
The Dow Jones Industrial Index was down 205 points, or 1.9 per cent, at 8am New Zealand time. Equity markets around the world sank as officials in Europe considered Finland's demands for collateral to underpin bail-out loans and what to do about Greece after it missed a budget deficit reduction target for 2012.
