NZ dollar falls vs greenback after Fed meeting
The New Zealand dollar fell from one-week high levels against the greenback early today amid broad United States dollar strength after a Federal Reserve policy meeting.
The New Zealand dollar fell from one-week high levels against the greenback early today amid broad United States dollar strength after a Federal Reserve policy meeting.
At the same time, the euro fell to a session low against the US dollar, as investors continued to trade on expectations that US interest rates would not change anytime soon after a press conference by Fed chairman Ben Bernanke.
The Fed also lowered its forecast for US economic growth but gave no hint of further stimulus plans. The central bank said the US economy should grow between 2.7 percent and 2.9 percent this year, down from an April projection of growth between 3.1 percent and 3.3 percent.
"Overall, Bernanke has continued to toe the line and stay on message, just as the more dovish members of the Fed have for the last few months," said Paresh Upadhyaya, senior currency strategist at BofA-Merrill Lynch, New York.
"With no change in the Fed policy rhetoric, that diminishes the risk to the (US) dollar."
At 8am today the NZ dollar was buying US81.44c, having earlier in the morning topped US81.90c, its highest level in a week after having risen from US81.28c at 5pm yesterday.
The kiwi rose to 0.5673 euro at 8am from 0.5654 at 5pm, and was up to A77.03c against the Australian dollar from A76.76c.
By 8am the NZ dollar was also at 65.40 yen from 65.25 at 5pm, with the trade weighted index at 70.39 from 70.15 at 5pm.
NZPA
Thu, 23 Jun 2011
Thu, 23 Jun 2011
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NZ dollar falls vs greenback after Fed meeting
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