WELLINGTON: The New Zealand dollar fell to a two-month low as upbeat US economic data reinforced expectations the Federal Reserve will hike interest rates this year, boosting demand for the greenback.
THE kiwi touched 72.15 US cents, and was trading at 72.18 cents at 8am in Wellington, from 73.13 cents at 5pm on Tuesday. The trade-weighted index dropped to 75.60 from 76.15.
The dollar index, which measures the greenback against a basket of currencies, touched a month-high following a string of generally positive US data overnight.
Reports showed US core capital goods orders rose 1 per cent in April, ahead of the 0.3 per cent expected, as the March figure was revised higher, while measures of consumer confidence, house prices and house sales also improved.
“The US dollar found a solid bid as markets found reasons to be optimistic from the latest US data dump,” ANZ Bank said.
The latest data supports the theory that the US economy will bounce in the second quarter, following a weaker first quarter, ANZ said.
