The New Zealand dollar plunged today, falling for the fourth consecutive session against its US counterpart, as inflation data came out a bit worse than was expected by market participants.
The Consumer Price Index rose 0.3 percent in the second quarter of this year, at the same rate as in the previous quarter. Markets counted on somewhat bigger increase by 0.4 percent. While the difference was not that big, the kiwi plunged sharply after the news. Some analysts say that this happened because traders started to re-evaluate their interest rate hike expectations.
NZD/USD dropped from 0.8765 to 0.8710, and NZD/JPY fell from 89.12 to 88.60 as of 13:17 GMT today.
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