Kiwi tops worst performing major currencies as unemployment rises

The New Zealand dollar fell in European trade against a basket of major rivals, extending losses for the second straight session against US dollar and plumbing a five-week trough, and becoming the worst performing major currency after weak unemployment data.

Such data bolstered the case the RBNZ won't issue additional interest rate hike, and that interest rates have peaked at 5.5%.

NZD/USD fell 0.9% to 0.6094, the lowest since June 30, with a session-high at 0.6169.

The New Zealand dollar fell 0.9% against US dollar on Tuesday, the fourth loss in five days as dollar powers up against major rivals.

Worst Performing Currency

Kiwi has topped the list of worst performing major G8 currency followingg New Zealand labor data

Kiwi plumbed a five-week trough against US dollar, and a week low against euro and Swiss franc, and a three-year nadir against  the pound, while losing 1.2% against yen, and 0.8% against Canadian dollar, and 0.5% against Aussie. 

New Zealand Unemployment 

Data showed New Zealand unemployment rose 3.6% in the second quarter of the year, missing estimates of 3.5%, and up from 3.4% in the first quarter. 

Such data showed the labor sector is  loosening up with the need for higher interest rates waning considerably.

The RBNZ

At the latest July meeting, the Reserve Bank of New Zealand maintained interest rates unchanged as expected at 5.50%, the highest since October 2008.

The bank is convening against on August 16 to discuss policies, expected to maintain current interest rates unchanged for the second meeting.