2008.12.2306:04:00UTC+00New Zealand Dollar Plunges To 1-week Low Against US Currency

Extending Asian session's downtrend, the New Zealand dollar fell to a 1-week low against the US currency during early European deals on Tuesday as New Zealand's recession worsened marginally in the third quarter of 2008.

Statistics New Zealand reported today that the nation's economic activity, as measured by Gross Domestic Product, contracted by 0.4 percent for the three months to September, marking the third straight quarter of decline. The most commonly used definition of a recession is two consecutive quarters of GDP contraction.

At about 4:45 am ET, the kiwi-greenback pair touched a 1-week low of 0.5700, compared to yesterday's close of 0.5725. If the pair weakens further, it may likely target the 0.565 level.

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