Dollar Down First Day in Four; Kiwi Plunges Amid Political Shift
- NZD drops after Labour leader backed as prime minister
- Pound near session lows ahead of U.K., EU leadership dinner
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The dollar pared losses alongside equity markets and Treasury yields. Fallout from New Zealand politics spilled over into currency markets while Catalonia was overlooked.
The Bloomberg Dollar Spot Index declined about 0.1 percent after falling as much as 0.3 percent. The greenback was lower versus seven of its G-10 counterparts. Losses were cushioned by the kiwi’s plunge after the unexpected change in New Zealand’s government. The unwind of New Zealand dollar carry trades may have distorted flows, as that currency dropped by more that 1.5 percent against each of its major peers.