The New Zealand dollar on Monday dropped to its lowest value in about one month against the world's reserve currency after questions arose about a milk product exported from the South Pacific nation, Bloomberg reports.
China said it will not accept milk powder exported by the Fonterra Cooperative Group Ltd. of Auckland, dragging down the Kiwi as much as 0.8 percent against the greenback. The monetary unit slid to its lowest value since early July against the dollar.
"We sell NZ$13.5 billion (roughly equivalent to $10.5 billion) of dairy products around the world," Trade Minister Tim Groser told Radio New Zealand, according to Bloomberg. "Is all of this at risk? In some purely theoretical sense, yes."
The Australian dollar plunged to its three-year low against the greenback as a consequence of economic data noting the South Pacific nation endured a decrease in retail sales. Policy makers with the Reserve Bank of Australia are set to convene a policy meeting on Tuesday.
Some products generated by Fonterra revealed a bacterial strain that have the potential to cause botulism, according to Reuters.
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