New Zealand Dollar Falls for Fourth Day Against Yen

The New Zealand dollar fell today, dropping for the fourth consecutive day against the Japanese yen, following the release of the trade balance report that failed to meet market expectations.

The trade balance released overnight showed a deficit of NZ$18 million in February. While it was a better reading than the January’s shortage of NZ$257 million, the actual data missed the consensus forecast of a NZ$160 million surplus.

The Reserve Bank of New Zealand kept its main interest rate unchanged at 1.75% at yesterday’s meeting, saying in the statement:

Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly.

The GDT Price Index released on Tuesday showed growth of dairy prices by 1.7% that followed a drop by 6.3% during the prior reporting period.

NZD/USD dropped from 0.7028 to 0.7012 as of 9:47 GMT today, reaching the low of 0.6993 intraday, which was the weakest level in a week. EUR/NZD rallied from 1.5335 to 1.5387. NZD/JPY declined from 77.98 to 77.92 following the rally to 78.26.

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