NZ dollar drops as investors sell high yielding currencies on US rate outlook

Mon, 31 Aug 2015

By Tina Morrison Sept. 1 (BusinessDesk) - The New Zealand dollar fell as investors sell higher yielding currencies in anticipation of interest rate hikes in the US. The kiwi dropped to 63.33 US cents at 8am in Wellington, from 64.23 cents at 5pm yesterday. The trade-weighted index declined to 68.65 from 69.50 yesterday. Investors are selling currencies such as the kiwi as they unwind so called 'carry trades' where they sell a lower-yielding currency to buy riskier, higher-yielding ones for better returns. The US dollar strengthened as...

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