NZ Dollar Drops as Economic Growth Stalls

The New Zealand dollar slumped today after the report showed that the nation’s economic growth almost stalled in the second quarter of this year.
New Zealand’s gross domestic product rose 0.1 percent in the second quarter of 2011. That’s compared to the median forecast of 0.5 percent and the 0.9 percent growth in the first quarter.
Reserve Bank of New Zealand Governor Alan Bollard signaled the central bank doesn’t feel need to raise the interest rates soon:

We do have a picture where we still do expect to have to push rates up. However, we don’t think there is any particular rush to do that.

NZD/USD dropped from 0.8011 to 0.7791 and NZD/JPY tumbled from 61.22 to 59.55 today as of 16:46 GMT.

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