New Zealand Dollar Falls as China May Curb Inflation

The New Zealand dollar fell today on the concerns that China may raise its interest rates to cool the economy and to slow the inflation.

Some analysts predict that the Chinese inflation may jump to 3.8 percent in the fourth quarter of this year. Wen Jiabao, the Premier of China, voiced concern that the high inflation may hurt economy and gathered the cabinet meeting on this matter, leading to the speculation that the government would take measures to curb the growth of the consumer prices.

NZD/USD fell from 0.7781 to 0.7762 as of 14:21 GMT today.

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