Tuesday after the Reserve Bank of Australia left its official cash rate unchanged at 2.5 percent.
The New Zealand dollar fell nearly a cent against the Australian dollar on
Tuesday after the Reserve Bank of Australia left its official cash rate unchanged at 2.5 percent.
The currency strategist at Westpac, Imre Speizer, said he was surprised the market reacted so sharply.
The RBA predictes slow growth, rising unemployment and that inflation will be somewhat higher than it previously forecast but still at about its two to three percent target over the next two years.
A short time ago, the New Zealand dollar was trading at 91.46 Australian cents, down from 92.30 cents just before the central bank's decision and from 92.73 cents this time yesterday.
It was also slightly weaker at 80.96 US cents and point-4958 euro but was slightly stronger at 49.66 British pence and down more than a yen at 81.92 yen.
On the New Zealand sharemarket, the the benchmark Top 50 Index fell for a second day, dropping 47 points to 4803.
The managing director at Harbour Asset Management, Andrew Bascand, said that a drop of more than 2 percent in the key United States stock indicies set the tone for the local market.
Fletcher Building shares were unchanged at $8.96 while Telecom shares fell 1 cent to $2.335
Xero, which peaked at $43.40 earlier this month, fell $1.71 to $37.80.
