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NZ dollar drops as low inflation points to rate cut
The New Zealand dollar fell by one US cent after Stats NZ data showed inflation eked out just a small gain in the March quarter, upping the ante for an interest rate cut next month. The CPI rose 0.1 per cent in the March quarter bringing the annual rate of inflation to 1.5 per cent, down from 1.9 per cent in December, Stats NZ said. The Kiwi dropped as low as US66.72c from US67.77c immediately before the release. Economists had predicted the CPI rose 0.3 per cent in the three months ended March 31, for an annual increase of 1.7 per cent, according to the median estimate from a poll of economists by Bloomberg. The ... (full story)