The New Zealand dollar started this Thursday falling sharply versus virtually all main traded currencies as its unemployment rate reached the highest rates in a decade, suggesting that the South Pacific economy is far from a complete recovery.

The kiwi declined significantly after a jobless report surprised forecasts and indicated an unemployment rate of 7.3% in the fourth quarter of 2009, decreasing chances that interest rates will be hiked in the following months by the nation’s central bankers, which impacted the appeal for assets in the region.

NZD/USD traded at 0.6984 as of 01:45 GMT from a previous rate 0.7107 yesterday.

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