The NZ dollar put in the worst weekly performance, falling by an average of -1.5% against the other dozen most actively-traded currencies. It lost two thirds of a US cent and was down by nearly four cents against sterling. For the most part, the factors working against the Kiwi were home-grown.
Specifically, the Reserve Bank of New Zealand put the cat among the Kiwi's pigeons when it cut its benchmark interest rate on Thursday morning. Of the 17 economists polled by Bloomberg ahead of the RBNZ decision, all but two expected the Official Cash Rate to remain unchanged at 2.5%. When, instead, the central bank cut the OCR to 2.25% the NZ dollar plunged, falling by four cents in an instant. It was not just Thursday's cut that hurt it: the RBNZ also intimated in its statement that further rate reductions were a possibility in the future.