New Zealand Dollar Lower on Economic Forecast

The New Zealand dollar fell today after the country’s government released its budget projections for the year.

The government more than doubled the estimate for budget surplus in 2016–17. Yet it reduced the outlook for growth both in 2017 and 2018. That means less money to spend for whoever wins the September election and less scope for monetary tightening from the Reserve Bank of New Zealand.

NZD/USD fell from 0.7274 to 0.7231 as of 11:37 GMT today. NZD/JPY declined from 79.70 to 78.93.

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