Citigroup Bailout sends New Zealand and Australian dollars plummeting

Sunday night the US government announced plans for a Citigroup bailout worth billions, sending the New Zealand and Australian Dollars plummeting as investors dumped higher-yielding currencies funded in the US and Japan.

The currencies also slumped as Asian Stocks fell indicating the worldwide credit crisis is damaging profits of financial companies.

Due to the Citigroup bailout more uncertainty and caution has arisen according to a senior currency strategist at Australia & New Zealand Banking Group, citing the less risk investors take the stronger the Yen performs against currencies like the New Zealand and Australian dollar.

On Friday the Australian Dollar tumbled 0.9 percent to 60.12 yen as of late trade in Sydney. New Zealand dollar also saw a fall of 0.9 to 50.96 yen.

Source: Bloomberg