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Currencies: New Zealand dollar dives on dovish central-bank message

The New Zealand dollar was the weakest major currency on Wednesday as its central bank joined the dovish global chorus of monetary policy makers.

The accommodative policy shift from New Zealand comes as European Central Bank President Mario Draghi said the central bank was starting to worry about the side effects of negative interest rates, but remained ready to act if the eurozone economy showed further weakness.

The New Zealand dollar NZDUSD, +0.0294% which fell sharply after a dovish policy update from the Reserve Bank of New Zealand, was the worst performer among G-10 currencies.

“Given the weaker global economic outlook and reduced momentum in domestic spending, the more likely direction of our next OCR move is down,” said the central bank.

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