New Zealand’s currency may drop to a more than two-year low, according to Morgan Stanley, as a 50 percent slide in milk powder fuels speculation the central bank will delay interest-rate increases. The slump in prices for New Zealand’s biggest export, along with benign inflation, will likely prevent the central bank from increasing its benchmark interest rate “for some time to come,” Morgan Stanley strategists Geoffrey Kendrick and Jessica Liang wrote in a report yesterday. The price of whole milk powder fell this month to a five-year low at auctions held by GlobalDairyTrade, which is owned by Auckland-based Fonterra ... (full story)