24th July 2014
The New Zealand dollar has recorded its largest single-session decline in almost a year in forex trading markets today (July 24th).
This comes after the Reserve Bank of New Zealand (RBNZ) warned the currency may be set for a "significant fall".
Governor of the bank Graeme Wheeler said the Kiwi's current value is "unjustified and unsustainable", while also indicating a pause in policy following a fourth interest rate rise of 2014.
Following these comments, the currency declined by at least one per cent against all 16 of its major forex peers.
The NZ dollar dropped by 1.5 per cent against its US counterpart to $0.8568 - the pairing's weakest level since June 12th.
Earlier this year, the RBNZ became the first developed-nation central bank to lift borrowing costs, citing a benign inflation outlook and a strong currency.
The bank's benchmark interest rate has now been lifted to 3.5 per cent - a full percentage point above its level at the start of the year - and a policy pause will mean this remains unchanged until after the September 20th general election.
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