Kiwi Drops Most in 3 Weeks as Central Bank Says Easing Is Likelyby
The New Zealand dollar fell by the most in three weeks on signals the nation’s central bank will further ease monetary policy.
The kiwi dropped as much as 1.1 percent, the biggest decline since Sept. 21, after Reserve Bank Governor Graeme Wheeler said interest-rate cuts seem likely even as recent economic indicators have been more encouraging.
“We remain bearish on kiwi,” said Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. “The stronger currency could invite the RBNZ to have sharper rhetoric.”
The currency slid 1.1 percent to 66.47 U.S. cents as of 4:45 p.m. in New York. The decline was the first in 11 days.