The New Zealand dollar fell from a three-month high against the pound after stronger-than-expected UK inflation weakened the case for further Bank of England rate cuts and was little changed against the greenback ahead of the Federal Reserve statement and domestic growth data.
The kiwi fell to 56.57 British pence as at 8am in Wellington from 57.12 pence late yesterday. It traded at 72.20 US cents from 72.24 cents.
In the UK, the core consumers price index rose 2.6 per cent in May from a year earlier, beating forecasts of a 2.3 per cent increase, and helping lift the pound, which has been weaker since the inconclusive election left Prime Minister Theresa May without a clear majority. The kiwi is holding near its highest levels in almost four months against the US dollar on speculation the Fed will hike the fed funds rate a quarter point this week without giving the market enough reassurance that it will deliver a second increase this year.
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