NZ dollar drops to six-year low as dairy price slump, tepid CPI feeds prospect for aggressive rate cuts

Thu, 16 Jul 2015

By Paul McBeth July 16 (BusinessDesk) - The New Zealand dollar dropped to a six-year low after a surprisingly sharp slump in dairy prices fuelled concerns about the impact to the broader economy, raising expectations the Reserve Bank will cut interest rates more aggressively with benign inflation providing plenty of scope for looser policy. The kiwi fell as low as 65.08 US cents, the lowest since July 2009, and was trading at 65.20 cents at 5pm in Wellington from 65.92 cents at 8am and 67.05 cents yesterday. The trade-weighted index dropp...

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