South Pacific currencies fall as credit services wield slashes to euro zone

The dollars of Australia and New Zealand slipped Friday to the world's reserve currency amid the threats of credit rating slashes to the nations of the embattled euro zone, Bloomberg reports.

The Kiwi's downward trajectory from Thursday continued on Friday amid the slump of global stock markets amid the fingering of France as one nation to suffer the wrath of the credit rating services. Trailing only Germany for economic might in the euro zone, France stood to lose its intact AAA rating.

"The risks to the European economy and to the broader global economy are still to the downside," currency strategist Joseph Capurso at Commonwealth Bank of Australia in Sydney told the news source.

Germany is likely to retain its unblemished AAA credit rating issued by Standard & Poor's, an official with a European government told the news source.

The Herald Sun reports the Australian dollar's initial performance on Friday was stronger amid a brighter outlook following a meeting in Europe. European Central bank President Mario Draghi said efforts to address the damaging tendencies of the sovereign debt crisis appeared to be working.