19 Mar 2020

NZ, Australian dollars in freefall

5:05 pm on 19 March 2020

The New Zealand dollar has been battered this afternoon, falling to an 11-year-low as it was caught up in the global selloff by investors seeking safety.

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Photo: 123RF

The kiwi fell more than two-and-a-half cents against the US dollar to a low of 54.7 cents, as it joined the Australian dollar in freefall.

It was also down against most other major currencies including the pound sterling, euro and Japanese yen.

The kiwi has fallen 12 percent in the past couple of weeks.

The Aussie dollar fell the most in a decade to touch an 18-year-low against the US dollar, which explains why the kiwi and Aussie have been trading close to parity in recent days.

The Australasian currencies are seen as risky assets and are often sold in times of stress and panic as investors look to raise cash.

Meanwhile, the pound has fallen to its lowest level against the US dollar since 1985, as the spread of the coronavirus pandemic spooks investors.

It is currently trading at $US1.15, a fall of almost 5 percent in just one day.


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