The New Zealand dollar weakened today after the dovish statement of Alan Bollard, the governor of the Reserve Bank of New Zealand, suggested that the central bank would keep the interest rates unchanged.

Bollard said that the worst earthquake in 80 years “significantly disrupted economic activity and is likely to continue to do so for some time.” The statement, which was more dovish than the traders expected, sent the bets on the interest rates hike down by as much as one and a half percentage point. The central bank left the overnight cash rate at 3 percent today.

NZD/USD fell from 0.7313 to 0.7260 as of 9:22 GMT today, following the decline to 0.7225.

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