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NZ dollar falls after RBNZ monetary policy statement

The New Zealand dollar fell in the wake of the Reserve Bank's Monetary Policy Statement (MPS), even though the official cash rate was held unchanged at a record low of 2.5 percent.The NZ dollar fell from around 70.80USc to about 70.20USc in reaction to th

NZPA
Thu, 11 Mar 2010

The New Zealand dollar fell in the wake of the Reserve Bank's Monetary Policy Statement (MPS), even though the official cash rate was held unchanged at a record low of 2.5 percent.

The NZ dollar fell from around 70.80USc to about 70.20USc in reaction to the MPS.

"Then it sat for a while and then we had weaker-than-expected Aussie employment data. The aussie dollar went down a bit on that and we followed," said Imre Speizer, currency strategist at Westpac.

The NZ dollar was at 69.80USc by 5pm, down from 70.63USc at the same time yesterday.

Mr Speizer said the MPS was actually hawkish overall but the market focused on the idea that higher lending costs had done some work for the central bank and it would not have to raise interest rates as much in the rate hike cycle when it occurs.

The bank is expected to start raising interest rates mid-year. Australia has already raised its official rate to 4.0%.

Against the Australian dollar, the NZ dollar was 76.55Ac at 5pm, down from 77.07Ac at the same time yesterday.

The NZ dollar was at ¥63.00 from ¥63.55 at the same time yesterday and €0.5102 from €0.5190 yesterday.

The trade weighted index fell to 64.58 at 5pm from 65.26 at the same time yesterday.

NZPA
Thu, 11 Mar 2010
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NZ dollar falls after RBNZ monetary policy statement
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