The New Zealand dollar weakened on Friday after dairy prices fell at the GlobalDairyTrade auction. The average price slumped 5.9%, with whole milk powder, the country’s key export, falling 8.3%.
The decline in dairy prices has put downward pressure on the New Zealand dollar, as dairy exports are a significant contributor to the country’s economy.
Analysts are closely watching the situation, as further declines in dairy prices could weigh on New Zealand’s economic growth.
Here are some factors contributing to the price drop:
- Increased global milk supply
- Weaker demand from China
- Geopolitical uncertainties
The New Zealand dollar is expected to remain volatile in the short term, influenced by global dairy market trends and overall risk sentiment.
