The Australian and New Zealand dollars slipped on Friday and were nursing hefty losses for the week on fears of a possible credit crunch as euro zone sovereign borrowing costs surge. The Australian dollar dropped as far as $0.9973, having pierced through parity overnight for the first time since October 12. It stood at $0.9981 in late local trade, versus $0.9990 in New York.
The local currency is down 3.5 percent so far this week on worries the euro-zone debt crisis could spread further and trigger a global financial meltdown. The Antipodeans lost ground against the safe-haven yen, with the Aussie posting a 3.6 percent fall for the week. It was last sitting near five-week lows at 76.83 yen. The kiwi was down 4 percent this week, hovering around a six-week trough at 58.36. Against the greenback, the New Zealand dollar dipped to a fresh six-week trough at $0.7562, down from $0.7585 late in New York. It has shed 4.1 percent this week.