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New Zealand's currency fell sharply due to weak growth and rate cuts, boosting exports but raising import prices.
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.
This decline boosts exporters and tourism by making New Zealand goods and travel more competitive, increasing returns for dairy farmers and attracting overseas visitors.
While this could support economic recovery and reduce the need for further rate cuts, it also raises import prices, fueling inflation.
Investors have seen improved returns on overseas assets, but gains may reverse if the currency rebounds.
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.
La moneda de Nueva Zelanda cayó bruscamente debido al débil crecimiento y a los recortes de tasas, impulsando las exportaciones pero elevando los precios de importación.