The New Zealand dollar fell today as the continuing problems in the European Union ensure that risk aversion sentiment remains in place, damping the attractiveness of the currencies related to economic growth.

The Indian rupee sank today as the negative outlook for the country’s economy and the unfavorable developments in the global economy hurt the prospects for the currency.

The US dollar was rising today, but now declines after the reports showed that the US economic growth were less than previously estimated, but the conditions for the US manufacturers improved.

Aussie is retreating after showing some signs of gains earlier. Now, though, Aussie is heading lower as risk aversion sets in. Concerns about sovereign debt in Europe, and the budget issues plaguing the US, are weighing on riskier currencies today.

Euro is higher right now, gaining as some Forex traders engage in short covering. However, the 17-nation currency is still vulnerable to debt problems — in the eurozone and in the US.

The South African rand rebounded today after yesterday’s decline on the speculation the central bank will keep its interest rates unchanged, continuing to draw foreign investors.

The Brazilian real ticked down as the developments in the global economy made investors favor safer assets over riskier ones.

A bi-partisan committee designed to find a solution to the debt crisis in the US has failed. As a result, US stocks are in free fall today. The US dollar, though, is mostly higher in Forex trading.

Chinese Premier Wen Jiabao is planning to allow the yuan to increase in flexibility on the currency market, according to state-run CCTV.

The Great Britain pound dropped today and dropped heavily as the house prices in Britain tumbled, reinforcing the negative outlook for the UK economy.