NZ Dollar Fails to Rally due to Inflation Expectations

The New Zealand dollar sank during the current trading session after official data showed that inflation expectations worsened. The currency reached the lowest level in a week and a half against its US counterpart.

The Reserve Bank of the New Zealand reported that short- and long-term inflation expectations deteriorated in the first quarter of this year. The data highlighted worsening outlook for the New Zealand economy. It had a clear impact on the NZ dollar as the currency was trying to rally at the start of the session but sank after the data came out.

NZD/USD was down from 0.7521 to 0.7447 as of 12:58 GMT today, trading near the lowest level since February 13. NZD/JPY fell from 89.35 to 88.95.

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