Australia’s dollar fell to the lowest in nearly two weeks after Reserve Bank Governor Glenn Stevens said it may be “materially lower” in the future.
The Aussie dropped versus all 16 of its major counterparts after Stevens said there will eventually be a tapering of U.S. stimulus that has debased the greenback. The Australian currency’s loss pared its monthly gain versus the U.S. dollar to 2.3 percent, which is still the most among peers. New Zealand’s kiwi weakened before its central bank meets Oct. 31.
“The Aussie’s dropped on the Stevens comments but it was already under a bit of pressure anyway,” said Tim Kelleher, the head of institutional foreign-exchange sales in Auckland at ASB Bank. “The market got a little carried away on the topside with both the Aussie and kiwi over the last fortnight and we’re now seeing them drift back off.”
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