Aussie, Kiwi Dollars Remain Lower After Cyprus Rejects Bank Levy

Australia’s dollar remained lower after its biggest drop in more than a week versus the greenback after Cyprus’s parliament rejected a bank-deposit levy needed to secure a bailout, sapping demand for high-yielding assets.

Government bonds in Australia and New Zealand rallied as the impasse threatened to reignite the crisis in Europe, boosting the allure of haven securities. The New Zealand dollar, nicknamed the kiwi, fell against most major peers as the government said the country’s most widespread drought in at least 30 years reduces pressure to raise interest rates.