11 Sep 2014

NZ dollar falls following OCR news

3:23 pm on 11 September 2014

The New Zealand dollar has fallen to a seven-month low against the US Dollar, following the Reserve Bank's decision to keep the cost of borrowing on hold.

The kiwi fell from 82.2 US cents to as low as 81.78 cents immediately after the statement - the lowest it has been since the 4 February.

A short time ago it was trading at 81.95 US cents.

Foreign exchange strategist at the Bank of New Zealand Raiko Shareef said no shift in the OCR was anticipated.

"I think the move reflects partly the fact that there may have still been some players looking for the Reserve Bank to stay consistent on its message that it wants to normalise monetary policy."

He said the drop also reflected the fact that the US dollar had strengthened over the past two months.

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