NZ dollar falls sharply after soft inflation data

SYDNEY: The New Zealand dollar fell over half a US cent on Tuesday after inflation came in lower than expected in the second quarter, quashing any thought the country's central bank might raise interest rates for months to come.

The kiwi sank to $0.7271 from $0.7330, after data showed the consumer price index was unchanged in the quarter, compared to forecasts of a 0.2 percent increase.

The annual pace of inflation slowed to 1.7 percent, again under the 1.9 percent forecast and down from 2.2 percent in the first quarter.