The New Zealand dollar dropped to a five-month low as the US dollar advanced on speculation the Federal Reserve would raise interest rates soon and the sentiment for the kiwi was sapped by weaker dairy prices.
The kiwi traded to 83.91 US cents, down from Tuesday’s 84.47 US cents and below a key support level of 84 US cents for the first time since early March.
Also, the currency was at 90.26 Australian cents, from Tuesday’s 90.45 US cents. The New Zealand dollar traded at 63.06 euro cents, ¥86.52, and 50.53 British pence.
“The US dollar is bid right across the board,” said Sue Trinh, Senior Currency Strategist at RBC Capital Markets.
“The kiwi has under-performed on most of the crosses as well, but sentiment is much worse on the back of the continued decline in dairy prices” and speculation interest rates “are on hold for the rest of the year,” she continued.
Dairy prices fell 0.6% based on the GlobalDairyTrade auction while whole milk powder climbed 3.4%.
The material has been provided by InstaForex Company – www.instaforex.com
The New Zealand dollar dropped to a five-month low as the US dollar advanced on speculation the Federal Reserve would raise interest rates soon and the sentiment for the kiwi was sapped by weaker dairy prices.
The kiwi traded to 83.91 US cents, down from Tuesday’s 84.47 US cents and below a key support level of 84 US cents for the first time since early March.
Also, the currency was at 90.26 Australian cents, from Tuesday’s 90.45 US cents. The New Zealand dollar traded at 63.06 euro cents, ¥86.52, and 50.53 British pence.
“The US dollar is bid right across the board,” said Sue Trinh, Senior Currency Strategist at RBC Capital Markets.
“The kiwi has under-performed on most of the crosses as well, but sentiment is much worse on the back of the continued decline in dairy prices” and speculation interest rates “are on hold for the rest of the year,” she continued.
Dairy prices fell 0.6% based on the GlobalDairyTrade auction while whole milk powder climbed 3.4%.
The material has been provided by InstaForex Company – www.instaforex.com
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