Australia, New Zealand dollars lower on risk aversion

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Both the Australian and New Zealand dollars were lower in relation to the Japanese yen and the US dollar Tuesday as equities markets fell again around the world and investors distanced themselves from risky investments such as carry trades.

The Australian dollar dropped 1.2 percent to ¥94.55 versus the yen and fell 0.6 percent to $0.8225 against the greenback, while the New Zealand dollar was down 1.9 percent in relation to the yen, to ¥81.15, and dropped 1.3 percent to $0.7081 versus the US currency.

Sterling was down 0.2 percent to $2.0080 in relation to the US dollar while it fell 0.7 percent to ¥230.90 versus the yen.

The yen was also higher against both the euro and the US dollar, up 0.6 percent to ¥156.80 and 0.7 percent higher to ¥114.95 respectively.

Meanwhile, the euro added 0.1 percent to $1.3650 versus the greenback and was up 0.3 percent to £0.6805 against sterling after the Ifo business climate index in Germany dropped to 105.8 in August from 106.4 in July, doing better than the decline to 105.4 that had been expected.