New Zealand dollar hits two-month low

Wellington, Oct 16 (IANS) The New Zealand dollar dropped to $0.6041 against the US dollar on Wednesday, which was the lowest since August 19.

The New Zealand dollar is slightly weaker earlier Wednesday against the US dollar, currently trading at $0.6064 at the time of writing.

The decrease was attributed to the stronger US dollar with a prospect of aggressive interest rate cuts in the United States, Xinhua news agency reported.

Domestically, New Zealand's annual inflation increased by 2.2 per cent in the third quarter, following a 3.3 per cent annual increase in the second quarter of this year, the lowest since March 2021, according to the new government statistics.

The New Zealand central bank reduced monetary restraint on October 9 by cutting its Official Cash Rate by 50 basis points to 4.75 per cent, the lowest in 18 months.