LONDON: The New Zealand dollar has fallen to a fresh five-year low as investors exited riskier assets in favour of safe havens as Greece and its creditors failed to reach agreement at the weekend ahead of a looming debt repayment deadline tomorrow.
The kiwi touched 67.90 US cents, its lowest level since June 2010, and was trading at 68.15 cents at 8am in Wellington, from 68.42 cents at the New York close and 68.85 cents at 5pm on Friday. The trade-weighted index dropped to 71.51 from 71.93 on Friday.
Investors are selling higher risk assets such as the kiwi and favouring more liquid, stable currencies such as the US dollar and the yen. The euro broadly declined this morning after talks broke down between Greece and its lenders at the weekend, prompting fears no deal will be struck before an International Monetary Fund June 30 payment deadline, leading to debt default and the country’s exit from the Eurozone.
