The US dollar fell to a five-month low against the euro on Wednesday (September 22nd), due to fears that the Federal Reserve will step up quantitative easing and print more money.
However, the shock of the day will have come for currency account holders sending money abroad to New Zealand, after depressing economic data led the currency to plummet by 0.9 per cent to NZ$0.7310 on the US dollar, Reuters reports.
This was due to the publication of figures showing that the nation's economy grew by just 0.2 per cent in the past quarter, a long way behind projected levels.
Robin Clements, UBS economist, told Reuters: "The bottom line is weaker than expected, weaker than the Reserve Bank has pencilled in, pretty much confirming the bank is on hold for the rest of this year at least."
While the New Zealand dollar continues to struggle, Australian currency reached a 26-month high against the US dollar earlier this week, due to the expectation that the Reserve Bank of Australia will soon announce interest rate rises.
