N.Z. Dollar Weaken


The New Zealand dollar weakened for a second day on speculation a decline in commodity prices will diminish the outlook for the economy.

New Zealand's currency slid to its lowest in a week on prospects reduced earnings from exports will strengthen the case for the countries central banks to cut interest rates.

The New Zealand dollar slid 0.3 percent to 70.63 U.S. cents from 70.87 cents late in New York on Aug. 22. It touched 70.39 cents, the lowest since Aug. 18. The currency, called the kiwi, slipped 0.5 percent to 77.67 yen from 78.04 yen.

The kiwi weakened for a second day against the Aussie on speculation New Zealand's economic growth will slow at a faster pace than Australia's.

Statistics New Zealand may say tomorrow the trade deficit widened to NZ$538 million ($380 million) in July, from a NZ$223 million trade shortfall in June, according to a Bloomberg News survey of economists. The report may add to signs the country's economy is cooling.


TradingEconomics.com, Bloomberg
8/25/2008 6:29:48 AM