The New Zealand dollar sank today after the nation’s central bank reported that inflation expectations for the next year dropped last quarter compared to the previous three months.
According to the Reserve Bank of New Zealand, median two-year-ahead inflation expectations fell from 2.2 percent to 2.0 percent. While the drop was not big, it added to speculations that the central bank will not continue resume monetary tightening in the near future. The NZ dollar fell after the data. The currency attempted to bounce intraday but failed and continues to move down as of now.
NZD/USD fell from 0.7857 to 0.7784, and NZD/JPY dropped from 92.92 to 91.97 as of 13:44 GMT today.
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