Kiwi dollar dives to 67 US cents as carry traders flee
3rd Sep 08, 6:42pm
The New Zealand dollar slumped to 67.2 US cents late on Wednesday from over 70 US cents as recently as Tuesday as foreign investors used to high Australian and New Zealand interest rates realise rates are falling on both sides of the Tasman. The Reserve Bank of Australia cut its official cash rate on Tuesday by 25 basis points to 7% and the Reserve Bank of New Zealand is widely expected to cut rates for the second time next week. Higher interest rates in Brazil and South Africa are also distracting foreign investors who have previously parked their money in the Antipodes rather than in Europe or Japan.