Australia’s dollar remained lower and New Zealand’s currency declined as demand for higher-yielding assets waned amid concern a partial shutdown of the U.S. government will hamper global economic growth.
The Aussie weakened for a second day versus most of its 16 major counterparts as U.S. House Speaker John Boehner said President Barack Obama refused to negotiate in a meeting with top congressional leaders about the government shutdown. New Zealand’s kiwi dollar earlier approached a one-week high after central bank Governor Graeme Wheeler said the nation’s interest rates may rise faster than policy makers currently project.
“The longer the U.S. government is shut down, the bigger the impact on gross domestic product,” said Besa Deda, the chief economist at St. George Bank Ltd. in Sydney. “It does provide a weaker global growth backdrop for the Aussie dollar, and that’s negative for the currency in a broader sense.”
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