NZD falls on back of unemployment rate

Last updated 18:39 08/11/2012

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The New Zealand dollar took a big fall against the greenback today on the back of the worst employment figures in 13 years.

The Kiwi closed at US81.60 cents, up from a low in the day of US81.53c and some distance from US82.48c in the morning.

Dan Bell, senior dealer at HiFX, said Thursday's trading was all about the unemployment rate which came out much higher than expected at 7.3 per cent from the anticipated 6.7 per cent.

"It's the worst unemployment rate since 1999 and is a pretty big concern for the economy, the Reserve Bank of New Zealand and the Government," Bell said.

"It shows the economy is just not hitting its stride despite the very strong Auckland housing market."

There was also a continued negative tone pervading the markets, said Bell, with the US, Asian and European sharemarkets down.

"Further direction of the Kiwi will be set by offshore markets overnight," he said.

On the crosses the kiwi was at 78.46 down from 79.23 earlier. It fell to 64.01 euro cents from 64.62 earlier. It was at 65.20 Japanese yen down from 65.97 and fell to 51.09 pence from 51.60 pence earlier.

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