Financial markets are still feeling the fallout of Britain's vote to leave the European Union, with nervous investors ditching risky assets.
Japanese markets were down in early trading Photo: AFP
The British pound continues to bear the brunt of the negative sentiment, falling to a 31-year low against the US dollar of $1.31 before trimming its losses to settle around $1.32.
The New Zealand dollar has cemented its dominance over sterling to sit at near-three year highs.
At midday the kiwi dollar was buying 53 British pence, but the cautious mood of investors meant it was just clinging to 70 US cents.
The New Zealand sharemarket has also succumbed to more selling pressure, having turned around a sharp fall yesterday to close with a slight gain.
The benchmark NZX-50 index was down 21 points or 0.3 percent at 6665, with the heavyweight regional markets in Australia and Japan both down around 1.5 percent in early trading.
Meanwhile, Britain's economic standing has suffered a fresh blow in the wake of its decision to leave the European Union - with two more credit rating agencies downgrading its prospects.
Fitch said fears about the impact of the referendum on Britain's public finances had prompted it to lower its assessment.
Moritz Kraemer from the ratings agency Standard & Poor's, which stripped Britain of its last remaining coveted triple-A rating said it was the first time S&P had chopped an AAA-rated sovereign credit rating by two notches in one move.
