NZ dollar weaker on rate cut, recession declaration

The New Zealand dollar weakened Thursday after the central bank there cut interest rates to 7.5 percent, half a percentage point, with the Reserve Bank of New Zealand saying that the economy there is now in recession.

At late morning in New York, the kiwi was worth 64.68 cents US while it took ¥68.858 to buy a New Zealand dollar.

The Australian dollar was also weaker as metals prices declined, but a new report showing that the Australian economy gained 14,600 jobs in August helped the Aussie pare declines so that in New York trade just before noon it took 79.35 cents US to buy an Australian dollar while the Aussie was worth ¥84.4918.

The yen, meanwhile, was stronger versus the US dollar and the euro as investors backed away from risky carry trades, with the yen trading at ¥106.48 to the greenback and at ¥ 148.1455 to the shared currency.

The US dollar strengthened versus the euro ahead of a new report, due tomorrow, that is expected to show that industrial production declined in the Eurozone again in July.

In late morning trade in New York, the dollar traded at $1.3916 to the euro.

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