20.10.201702:48:00UTC+00Kiwi Weakens on Newly Established NZ Government

New Zealand's currency fell below the $0.70 level for the first time in five months as uncertainty regarding the policy outlook under its newly established government prevailed in the markets.

The kiwi traded down 0.7 percent on Friday, after declining by as much as 2 percent on Thursday after opposition leader Jacinda Adern received the support of the nationalist New Zealand party, which was led by Winston Peters, enabling the Labour leader to create a new coalition government.

Adern will lead a centre-left government, backed by the left wing Green party, that is seen to refocus economic policy around providing public services, implementing stricter immigration measures and foreign ownership laws.

The New Zealand Dollar traded at $0.6982 versus the greenback on Friday, notching the first time it had fallen below the $0.70 mark since late May. Pressure on the kiwi also saw it decline to a 15-month trough versus the Australian dollar.

The S&P/NZX 50 index, which has risen 18 percent this year, was unchanged after Friday's morning session.