The Canadian dollar declined for a third day versus its U.S. peer amid speculation the Federal Reserve may indicate when it will begin slowing monetary stimulus in the U.S., the nation’s largest trading partner.
The Australian dollar extended this quarter’s biggest decline among major counterparts after the Reserve Bank indicated the currency may weaken further.
Australia’s dollar rose, extending its first weekly gain against the greenback in six, amid speculation record bets on its decline may be overdone.
New Zealand Prime Minister John Key said he wants the country’s central bank to exempt first-home buyers from tighter mortgage lending criteria it is planning to implement.
The Australian and New Zealand dollars slumped against their major peers as market volatility prompted traders to retreat from higher-yielding assets.
The New Zealand dollar fell against all 16 major peers after the nation’s central bank kept borrowing costs unchanged at a record low to avoid re-igniting demand for the currency.
The dollar is moving more in tandem with stocks than any time since 2008 in a sign that traders are gaining confidence in the sustainability of the U.S. recovery.
New Zealand’s central bank expects to keep borrowing costs at a record low this year to avoid re- igniting demand for the currency, which it said remains overvalued. The kiwi declined.
The New Zealand dollar fell against its 16 major peers after the Reserve Bank left benchmark rates unchanged at a record low and said the currency remains overvalued.
The following is a reformatted version of a statement released on the website of the Reserve Bank of New Zealand, which today left its official cash rate at a record-low 2.5 percent.
Axel Merk Favors New Zealand Dollar