Yes. "To crimp" has a literal meaning: to crush inward, to clamp, to squeeze so tightly that the shape changes. You can make hair curly by crimping it in a crimping iron. Some electrical contacts have a tube-shaped metal extension, which you connect to a wire by crimping it--squashing it flat so that it grips the wire. It also carries the idea of interference and restriction. English is rich in synonyms. The writer probably chose this word because he liked its associations. Notice how he used a different synonym, "slid substantially" in the same sentence. He was trying to express himself in a clever way. It might be a fancy way to say something simple. To say that the Kiwi dollar has "slid" against the US dollar is just a way of saying a Kiwi dollar is worth fewer US dollars... so obviously a Kiwi dollar will buy less of anything priced in US dollars.

Yes, that is correct.