The Australian and New Zealand dollars fell against most major peers as declines in global stocks reduced investor appetite for higher-yielding assets.
The Aussie weakened for a third day in four against the U.S. dollar after reaching a three-month high last week. New Zealand’s dollar headed for its biggest drop this month against the greenback after touching the highest level in four months last week. The kiwi retreated from near a five-year high versus its Australian counterpart as traders adjusted bets on a divergence in interest rates at the nations’ central banks.
“The equity markets opened on a softer foot, and we’re seeing a bit of weakness in the Aussie dollar as some risk comes off the table,” said Jim Vrondas, the Sydney-based chief currency and payment strategist at OzForex Ltd. “I don’t expect it to have a long-lasting effect.”
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