South Pacific dollars were driving lower in value on Monday, marking the second consecutive session of drops as the severity of the sovereign debt crisis deepens, Bloomberg reports.
The Australian dollar lost value against the Japanese yen as economic data indicated inflation in Australia relaxed while the New Zealand dollar lost value against all 16 of its competing monetary units. Spanish government bond yields pushed to an all-time high since the euro has been on the market and conjecture about Greece's departure the euro bloc dragged down the currencies.
"The European crisis is far from solved and those concerns are weighing on the market," managing director Thomas Averill with Rochford Capital in Sydney told the news source. "Risk sentiment is very fragile and very volatile. You'll likely to see the Aussie and the Kiwi follow equities south."
The gravity of the situation in Spain appears to be getting markedly worse, The Wall Street Journal reports. The nation has become a flashpoint for discussion about a mushrooming financial crisis.
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