The New Zealand dollar has fallen 15% against the greenback so far this year, reflecting weaker economic growth, falling dairy prices, lower interest rates and a pick up in the US. Photo / NZME.
The New Zealand dollar fell as better-than-expected US durable goods data supported the greenback and commodity currencies weakened.
The kiwi dropped to 64.30 US cents at 8am in Wellington, from 64.93 cents at 5pm yesterday. The trade-weighted index declined to 69.61 from 70.12 yesterday.
The US dollar index, which measures
the greenback against a basket of currencies, climbed after US durable goods orders printed stronger than expected in July, up 2 percent from the previous month compared with expectations for a 0.4 percent decline, suggesting US business investment is continuing to improve in the third quarter.
The Bloomberg Commodity Index of 22 raw materials slid to a fresh multi-year low, weighing on commodity-linked currencies such as the Norwegian krone, and the Canadian, Aussie and kiwi dollars.
The New Zealand dollar "fell overnight as the US durable goods data came in significantly better than expectations," ANZ Bank New Zealand senior economist Sharon Zollner and senior FX strategist Sam Tuck said in a note. "We expect the US dollar to remain in demand."
