The New Zealand dollar hit its lowest point in more than a week against the broadly rising greenback as investors awaited an interest rate announcement by the US Federal Reserve.Markets expect at least some form of modest easing when the Fed meets, with s
The New Zealand dollar hit its lowest point in more than a week against the broadly rising greenback as investors awaited an interest rate announcement by the US Federal Reserve.
Markets expect at least some form of modest easing when the Fed meets, with some speculation it could revive a plan to buy Treasury and mortgage debt to give the economy a boost.
The Fed's statement is expected about 6.15am tomorrow, NZT.
With US interest rates already effectively at zero percent, the central bank is out of easy policy options.
Top Fed officials argue, however, they can do more to fight renewed economic weakness, including reinvesting proceeds from maturing mortgage bonds back into that market.
By 5pm, the kiwi fell to 72.26USc, down from 72.86USc this morning and almost 1USc lower than 5pm yesterday.
The NZ dollar was also down significantly against other major trading partners aside from sterling, which it eased against to 45.74p from 45.79p late yesterday afternoon.
Against the aussie, the kiwi was at 79.30Ac from 79.71Ac at 5pm yesterday. It fell to ¥62.02 from ¥62.55, and €0.5496 from €0.5510.
Reflecting the decline, the trade weighted index eased to 66.78 from 67.25.
The Australian dollar and euro also slid against the US dollar, although the yen strengthened.
Markets fear Japanese authorities could intervene to weaken the yen so that strength does not derail a fragile, export-led recovery, with Japan's finance minister expressing concern about yen strength.
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