New Zealand Dollar Slumps as GDP Grows Less Than Forecast
The New Zealand dollar slumped today after the government reported that the nation’s economy expanded less than expected, damping the prospect for the interest rates hikes.
The New Zealand gross domestic product rose 0.2 percent in the third quarter of this year, following the 0.5 percent growth in the second quarter. The actual growth was much smaller than the forecast 0.8 percent increase. The slow economic growth reinforced the outlook that there will be no interest rates increases until the next year.
NZD/USD tumbled from 0.7384 to 0.7279 today as of 9:26 GMT.
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Earlier News About the New Zealand Dollar:
- Kiwi Falls as Fed May Refrain from Additional Stimulus (2010-09-21)
- New Zealand Dollar Rises, But Gains Tempered by Growth Outlook (2010-09-18)
- New Zealand Dollar Weakens on Interest Rates Outlook (2010-09-16)
- Australian & New Zealand Currencies Gain vs. Yen (2010-09-15)
- Week of Risk Appetite Boosts New Zealand Dollar (2010-09-11)