N.Z. Dollar Drops to Lowest in Week as Commodities Fall

New Zealand’s dollar fell to a one- week low versus its U.S. counterpart as raw-materials prices decreased, damping demand for currencies of commodity-exporting nations.

The currency, nicknamed the kiwi, slid against all of its 16 most-traded counterparts except Brazil’s real before data today that may show consumer prices rose at the slowest annual rate in almost two years. The kiwi and Australia’s dollar weakened as the Standard & Poor’s GSCI Index of 24 raw materials tumbled 1.1 percent, its biggest loss in more than a week.

New Zealand’s dollar fell 0.6 percent to 81.59 U.S. cents yesterday in New York and touched 81.46 cents, its weakest level since April 11. The kiwi slipped 0.1 percent to 66.30 yen.

The Aussie dollar depreciated 0.3 percent $1.0359. It was 0.2 percent stronger against the yen at 84.17.

Statistics New Zealand may report that the nation’s consumer price index increased 0.5 percent in the first quarter, compared with a 0.3 percent decline in the previous three-month period, according to the median estimate of economists surveyed by Bloomberg News. Prices probably rose 1.6 percent from a year earlier, the slowest annual pace since September 2010.

To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.