New Zealand’s dollar fell the most in three decades as a selloff in commodities deepened amid escalating concern over China’s economy.
The kiwi, named for the image of the flightless bird on its NZ$1 coin, tumbled as much as 8.3 percent versus the greenback, the most since December 1985, before paring losses. It was down 2.6 percent at 65.1 U.S. cents as of 10:34 a.m. in New York, the lowest in six years. The Australian dollar slumped to its lowest since 2009 while Canada’s currency touched a new 11-year low. South Africa’s rand fell to a record.
“The market is extremely negative on commodities, on China,” Georgette Boele, a currency strategist at ABN Amro Bank NV, said by phone from Amsterdam. “It’s not just commodity currencies but also commodities that are under pressure.”
Bloomberg’s index of commodities tumbled to its lowest since 1999 as a global market rout sparked by worries about China’s slowing growth worsened. New Zealand, which has seen the price of milk -- one of its major exports -- plummet, counts China as its largest trading partner.
The Aussie slid 1.4 percent to 72.11 cents after touching 70.50, its lowest since April 2009.