Kiwi pushes up in hours ahead of rate announcement
The New Zealand dollar was pushing up in trading in the hours ahead of interest rate announcements in New Zealand and the United States.
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The New Zealand dollar was pushing up in trading in the hours ahead of interest rate announcements in New Zealand and the United States.
In both countries central banks are expected to keep benchmark rates on hold.
At 7.30am today the NZ dollar was buying US76.84c, having climbed from around US76.50c two hours earlier, and from US76.66c at 5pm yesterday.
The kiwi was also up to 0.5623 euro at 7.30am from around 0.5590 at 6am and 0.5603 at 5pm, and was up to A77.15c against the Australian dollar having dipped below A76.80c around 4.30am.
In the US, investors were cautious and looking for confirmation from the Federal Reserve (due 8.15am NZT) that its focus remains on supporting growth and not on inflation.
"The Fed is expected to keep policy on hold today, leaving the tone of the statement the major risk," said Sacha Tihanyi, currency strategist at Scotia Capital in Toronto. "Acknowledging an improved inflation situation may provide US dollar support."
ANZ said it was all about the Reserve Bank of New Zealand today as far as the NZ dollar was concerned. A dovish tone in its 9am announcement could see the NZ dollar under pressure.
The kiwi was up to 63.29 yen at 7.30am having climbed from about 62.90 at 3am. The trade weighted index was 68.50 at 7.30am from 68.33 at 5pm.
NZPA
Thu, 27 Jan 2011
Thu, 27 Jan 2011
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Kiwi pushes up in hours ahead of rate announcement
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