Bloomberg News

Australian, N.Z. Dollars Decline After S&P Cuts Spain’s Rating

October 13, 2011

Oct. 14 (Bloomberg) -- Australia’s dollar fell from a three-week high against its U.S. counterpart after Standard & Poor’s cut Spain’s long-term sovereign credit rating, damping demand for higher-yielding assets.

New Zealand’s currency and the so-called Aussie declined against the yen for a second day as S&P 500 futures signaled the U.S. stocks gauge may drop. China, Australia’s biggest trading partner and New Zealand’s second-largest export market, will report today inflation figures for September.

“I don’t think the market’s out of the woods yet,” said Thomas Averill, a director at foreign-exchange and interest-rate risk management company Rochford Capital in Sydney. “The Aussie may be sold quite aggressively overnight.”

Australia’s dollar fell 0.3 percent to $1.0161 at 10:19 a.m. in Sydney from yesterday, when it touched $1.0233, the highest level since Sept. 21. Australia’s currency slid 0.3 percent to 78.17 yen. The New Zealand dollar declined 0.3 percent to 79.28 U.S. cents, and weakened 0.3 percent 60.99 yen.

--With assistance from Masaki Kondo in Tokyo. Editors: Nate Hosoda, Jonathan Annells

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To contact the reporters on this story: Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net;

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.


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