The New Zealand dollar weakened today, falling for the second session against the US dollar and the Japanese yen. The kiwi was moving sideways against the greenback for the past three months. Against the yen the New Zealand currency was rising since the end of October but halted its rally at the end of November.
The weakness of the New Zealand dollar can be explained by the decline of commodity prices and the strength of the US currency. The performance of the kiwi is correlated with moves of prices for raw materials. And commodities suffer as prospects for monetary tightening in the United States bolster the greenback.
NZD/USD fell from 0.7804 to 0.7777, and NZD/JPY dropped from 93.03 to 92.89 as of 10:07 GMT today.
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