Article by ForexTime
The New Zealand dollar was one of the worst performing currencies today after falling almost half a percent against the US dollar. The main catalyst for the kiwi weakness was a weak growth forecast by the New Zealand government. NZDUSD was trading at $0.8440 in early London session trading.
The New Zealand dollar has lost more than 4 percent since hitting record highs in July. The currency was also placed under pressure by a dip in producer prices which reflected broader concerns over growth and demand for New Zealand’s dairy exports.
The market reacted negatively to the downgrades to GDP growth forecasts which show that growth in the year to next March will be at 3.8 percent from 4 percent earlier.
The growth forecasts, however, still showed New Zealand outstripping most of its developed world peers, and there has been a steady rise in interest rates at a time when other developed nations like in Europe and the United States all have record low interest rates.
Article by ForexTime
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