The speculation that Japan’s policy makers wouldn’t be able to limit the yen’s gains pushed the New Zealand dollar down against the Japanese currency; the kiwi (as the NZD nicknamed) also fell against the US dollar as New Zealand trade balance posted the deficit for the first time in seven months.
The Bank of Japan‘s decision to intervene in order to support the nation’s economy reflects the concerns for the growth of the advance economies across the world. The New Zealand economy also gave reasons for the concern as the trade balance posted the deficit of NZ$186 million in July, the reading which is much worse than the figure of the previous month (the surplus of NZ$214 million) and the forecast (the deficit of NZ$28 million).
NZD/USD fell from 0.7122 to 0.7088 today as of 13:32 GMT, while NZD/JPY slipped from 60.79 to 60.04, following the surge to 61.28.
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