New Zealand’s dollar dropped against all its major peers as a worsening drought threatened the nation’s agricultural economy.
The so-called kiwi touched a six-week low against the Australian dollar ahead of a report from the larger nation forecast to show home loans rebounded, lessening the chances of interest rate cuts. Demand for the Aussie dollar was supported after data showed Australia’s consumer confidence rose to a more than two-year high.
“The drought continues to worsen on an almost daily basis, placing downward pressure on the New Zealand dollar,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “There’s no doubt that growth in the first half of this year will be weaker as a result of the drought.”
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