The New Zealand dollar slid to multi-year lows against its major counterparts as inflation data released today missed analysts’ expectations, increasing chances for monetary easing from the nation’s central bank.
The Consumer Price Index rose 0.4 percent in the second quarter of 2015 from the previous three months, trailing the median forecast of 0.5 percent. On a positive side, the Business NZ Manufacturing Index climbed by 3.2 points to 55.2 in June. Still, experts speculate that the worse-than-expected inflation data may prompt the Reserve Bank of New Zealand to reduce interest rates as early as the next week.
NZD/USD declined from 0.6589 to 0.6519 as of 10:52 GMT today, and its daily low of 0.6498 was the weakest rate since July 2009. NZD/JPY went down from 81.53 to 80.83, touching the low of 80.44 — the weakest since October 2013.
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