NZ dollar may extend decline vs euro as carry trade loses lustre

Wed, 17 May 2017

By Paul McBeth May 17 (BusinessDesk) - The New Zealand dollar may extend its decline against the euro and other cross-rate currencies on concern the carry trade - where investors borrow at low interest rates to buy higher-yielding assets - will be eroded by US rate hikes as soon as next month. The kiwi fell to an 11-month low 61.99 euro cents and was trading at 62.09 cents as at 5pm in Wellington from 62.59 cents yesterday. It increased to 68.96 US cents from 68.61 cents yesterday. Currencies including Japan's yen, the British pound...

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