The Asian currencies dropped sharply versus the major counterpart after the U.S. stock market slumped to the worst level since 2009 along with the sluggish in Europe equities, adding that there a bad sign for the global economic recovery which is losing its momentum during the time, damping the demand for higher-yielding currencies.

The New Zealand currency has slumped to the lowest level in three weeks, affected by the bad outlook for the global economic recovery, while started its sharply downside movement after the Standard & Poor's 500 index posted its biggest loss since February 2009.

Moreover, the Australian dollar, nicknamed Aussie, declined to a five-week low against the greenback after the U.S. 2-year Treasury yield fell to a record.

On the other hand, concern the global economy may move into a recession movement, pushed investors out of stocks and into the relative for safe havens.