Kiwi Slides as Wheeler Hints at Rate Cut, Dollar Weighed by Fed

New Zealand’s dollar slumped after the central bank said it would cut interest rates if inflation pressures decline and called the currency’s strength while key export prices drop “unwelcome.”

The kiwi fell against all its 16 major peers, tumbling more than 1 percent versus the greenback after the Reserve Bank of New Zealand kept the official cash rate at 3.5 percent. Governor Graeme Wheeler said the currency is unjustifiably high on a trade-weighted basis. A gauge of the U.S. dollar held losses near a two-month low after growth in the world’s largest economy slowed, clouding the outlook for Federal Reserve policy.