Australian dollar falls
Article by Mozo
The Australian dollar has fallen in value against its New Zealand counterpart today (September 5th), following this week's interest rate decision and lower economic growth figures.
New Zealand's currency climbed to 77.87 Australian cents by 17:00 in Wellington, compared with 77.59 cents at 08:00 and 77.65 on Tuesday.
The news came as a result of a combination of optimism about New Zealand and some downbeat reactions to Australia's gross domestic product in the June quarter, which came in today at 0.6 per cent.
Such a development may also be linked to possible cuts in interest rates to be made in the future by the Reserve Bank of Australia (RBA) if it feels the economy is starting to slow down.
The news today was somewhat in contrast to that earlier in the week after the RBA held interest rates, which led to rallies against not just the Kiwi dollar, but also major currencies like the yen, the US dollar and the euro.
Have a question about interest rates? Ask the money gurus at Mozo Answers.