NZ dollar falls after weak jobless figures
NZ's higher than expected jobless number is seen as a reason for the Reserve Bank to hold interest rates low for longer, also dragging the kiwi down.
10 August 2012
The New Zealand dollar fell against the greenback after weaker-than-forecast unemployment data stoked expectations for the Reserve Bank to push out its path to higher interest rates.
The New Zealand dollar fell to 81.19 US cents just before 8am from 81.49 cents on Thursday at 5pm in Wellington. The trade weighted index was little changed at 73.03 from 73.02.
New Zealand's unemployment rate unexpectedly rose 0.1 of a percentage point to 6.8 per cent on Thursday, while Australia's rate of joblessness fell to 5.2 per cent.
The New Zealand number is likely to see the Reserve Bank keep interest rates unchanged for the foreseeable future, while reaffirming the moderate view of growth across the Tasman.
"We have seen quite a shift in monetary policy expectations," said Mike Jones, market strategist at Bank of New Zealand.
"Hit by the double employment whammy yesterday it has hardened expectations that the Reserve Bank is on hold for the foreseeable future, dragging the kiwi off its highs."
The New Zealand dollar was little changed at 76.71 Australian cents from 76.76 cents at 5pm on Thursday.
The kiwi rose to 66.01 euro cents from 65.71 cents and fell to 63.76 yen from 63.87 yen.
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