4 Mar 2010

NZ dollar drops against Australian currency

7:54 pm on 4 March 2010

The New Zealand dollar continued to fall against its Australian counterpart on Thursday, following robust economic growth figures from across the Tasman.

The Kiwi fell to a nine-year low of 76.6 cents earlier, but recovered slightly on Thursday evening to trading at 76.7c.

The Australian economy grew 0.9% in the last three months of 2009, its fastest pace in almost two years. On an annual basis, gross domestic product rose 2.7%.

Australia's Reserve Bank has indicated it will continue to raise the cost of borrowing, and economists predict the benchmark interest rate will be 5% by the end of this year.

Against the US dollar, the Kiwi was trading at 69.4c on Thursday evening.