NZ Dollar Down on Risk Aversion Sentiment

The New Zealand dollar dropped versus its U.S. counterpart today to the lowest level since July 2009 as the European troubles and the concerns about the possible escalation of the conflict between North and South Korea increased the risk aversion sentiment and caused the investors to turn away from the higher-yielding currencies.
Some good news for the currency appeared too. Fonterra, the world’s largest exporter of dairy products, is expected to pay the farmers for milksolids NZ$6.60 ($4.40) per kilogram in the year ending May 31st 2011, compared to NZ$6.10 this year. New Zealand gets the biggest export revenue from the dairying.
NZD/USD traded at 0.6589 as of 9:36 GMT today after it opened at 0.6761.

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