Markets

New Zealand dollar slips on benign inflation data

Published July 16, 2014 Updated July 16, 2014 03:23am

SYDNEY: The New Zealand dollar shed nearly half a US cent on Wednesday after local inflation data came in softer than expected, an outcome that could ease pressure on the central bank to continue tightening policy this year.

The kiwi dollar fell to a session low at $0.8725, from around $0.8766, after the annual inflation rate came in at 1.6 percent in the second quarter, below the 1.8 percent consensus.

Sentiment for the kiwi had already soured after international milk prices fell and volumes dropped at an auction held by New Zealand's Fonterra Co-operative Group, the world's biggest dairy exporter.