New Zealand’s dollar fell against all 16 of its major peers, adding to yesterday’s biggest decline this month against the greenback, after the country’s trade deficit unexpectedly widened.
The kiwi dropped to its lowest in a week against the U.S. dollar, retreating from a four-month high reached on Sept. 19, after Auckland-based Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, reported a decline in full-year earnings. The Aussie held losses against most major counterparts before the release of the central bank’s semiannual Financial Stability Review.
“The kiwi’s had a good run and in these uncertainties there’s the possibility that you’re going to see people looking to take some profit off the table,” said Chris Weston, the chief market strategist at IG Markets Ltd. in Melbourne. “A lot of these commodity currencies are perhaps a touch overbought.”
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