NZ dollar falls as Fonterra forecast disappoints market, argues for rate cut

Thu, 26 May 2016

By Jonathan Underhill May 26 (BusinessDesk) - The New Zealand dollar fell after Fonterra Cooperative Group gave a lower-than-expected opening forecast for the 2017 milk payout, which it said partly reflected a strong currency, stoking expectations the Reserve Bank will cut interest rates sooner rather than later. The kiwi fell to 67.16 US cents as at 5pm in Wellington, from 67.51 cents late yesterday. The trade-weighted index dropped to 72.32 from 72.83 yesterday. Fonterra forecast a 2016/17 payout of $4.25 per kilogram of milk solids...

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