NZ Dollar Drops amid Easing Speculations

The New Zealand dollar tumbled today amid speculations that the Reserve Bank of New Zealand is going to cut interest rates at this week’s policy meeting.

The RBNZ policy meeting is scheduled to Wednesday, December 9. Experts speculate that the central bank is going to ease its monetary policy, reducing the main interest rate by 25 basis points to 2.5 percent. Such talks, as well as the outlook for tighter monetary policy from the Federal Reserve, were driving the New Zealand currency lower during the Monday’s trading session.

NZD/USD fell from 0.6738 to 0.6662 while NZD/JPY went down from 83.00 to 82.23 as of 12:20 GMT today.

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