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flag New Zealand's currency fell sharply due to weak growth and rate cuts, boosting exports but raising import prices.

flag The New Zealand dollar has dropped 6% against the US dollar since July, hitting a three-year low versus the Australian dollar and falling below 0.50 against the euro—the weakest since 2009—due to weak economic growth and Reserve Bank rate cuts. flag This decline boosts exporters and tourism by making New Zealand goods and travel more competitive, increasing returns for dairy farmers and attracting overseas visitors. flag While this could support economic recovery and reduce the need for further rate cuts, it also raises import prices, fueling inflation. flag Investors have seen improved returns on overseas assets, but gains may reverse if the currency rebounds. flag Experts stress that long-term financial decisions should focus on fundamentals, not exchange rate swings, as no single rate is ideal—policymakers aim for a balance between export strength and purchasing power.

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