NZ Dollar Falls on Risk-Off Sentiment, Bounces

The New Zealand dollar fell today as the market sentiment remained negative for currencies associated with risk. Japan with its economic problems is still a major source of concerns for investors, which drives them away from higher-yielding assets. As of now, the kiwi trimmed losses versus its US counterpart and trades near the opening level against the Japanese yen.
The Forex market has been in the risk-off mode since Japanese Prime Minister Shinzo Abe said that he is going to postpone the planned sales-tax increase and will initiate premature elections. The announcement followed data that showed recession of Japan’s economy. The New Zealand currency fell as a result of the negative market sentiment. The decline of dairy prices was not helping either as milk products are important source of export revenue for New Zealand.
NZD/USD fell from 0.7921 to 0.7866 as of 14:35 GMT today, reaching the low of 0.7838 intraday. NZD/JPY fell from 92.56 to 92.09 before bouncing to the opening level later.

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