The New Zealand dollar fell overnight after New York Federal Reserve president William Dudley said he expects US interest rates to be raised this year, although on a low trajectory, while a drop in global stock markets sapped risk appetite and demand for growth-linked currencies such as the kiwi.
The local dollar fell to 63.32 US cents as at 8:30am in Wellington, from 63.99 cents late yesterday. The trade-weighted index fell to 69.18 from 69.79.
Equity markets in Europe and the US fell, and commodities dropped amid concern growth in China may be slowing, after figures yesterday showed weaker Chinese industrial profits. The Fed's Dudley - one of nine US central bank officials talking this week - said he expects the US economy will continue at its current pace, meaning "we probably will raise interest rates later this year".
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