The New Zealand dollar declined for a second day as concern Europe will struggle to contain its sovereign-debt crisis sapped demand for riskier assets.
The so-called kiwi dollar fell versus all 16 major counterparts as Asian stocks slid. Australia’s dollar pared losses after the Reserve Bank said in minutes of its Nov. 1 meeting there was a case for keeping interest rates unchanged.
“The market is still very skeptical that the European problem can be solved any time soon,” said Thomas Averill, a director at the currency and interest-rate risk management company Rochford Capital in Sydney. “Skepticism within the European bond market followed through into general risk aversion. Aussie and kiwi remain vulnerable to the downside.”