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New Zealand Dollar Falls After IMF Says Currency Is Overvalued
New Zealand’s dollar fell against the greenback, ending a two-day gain, after the International Monetary Fund said it may be as much as 20 percent overvalued relative to estimates of the equilibrium exchange rate. The so-called kiwi also declined after the Treasury Department said the nation’s budget deficit was wider than forecast in the nine months through March. Australia’s dollar weakened against 14 of its 16 major counterparts before Australian Treasurer Wayne Swan releases his fourth budget today amid promises of “substantial” spending cuts.