PERTH: The New Zealand dollar has fallen sharply against the Australian in a double interest rate and dairy price whammy.
The kiwi fell to A88.40c from A90.20c on Tuesday evening after the Reserve Bank of Australia (RBA) kept the official cash rate at 2 per cent.
It climbed to A88.67c on Wednesday morning.
The kiwi remained unchanged against the United States dollar , trading at US65.64c on Tuesday evening and US65.45c on Wednesday morning.
ASB economist Chris Tennent-Brown said the NZ dollar had come back some way by Wednesday morning from the “double whammy” result of the RBA rate announcement and the disappointing results from the GlobalDairyTrade auction, which saw the price index fall for the 10th consecutive time.
