Dollar steady ahead of Fed decision, kiwi slumps after RBNZ holds
TLT•The US dollar held near a two-week high ahead of the Fed decision, while the New Zealand dollar fell as much as 1.7% after the RBNZ unexpectedly held its rate at 2.75%. Fed funds futures priced a 91% probability of no change.
1. Dollar awaits Fed decision
The US dollar held at a two-week high as markets awaited the Federal Reserve’s policy decision. The euro was flat at $1.1129, the pound was flat at $1.3307, and the dollar was last 0.1% lower at 157.81 yen.
2. Kiwi slides after RBNZ hold
The New Zealand dollar fell as much as 1.7% to $0.5585 after the RBNZ unexpectedly left its interest rate at 2.75%. A poll of economists had 22 of 27 forecasting a rate increase.
3. Other currency moves
The Australian dollar rose 0.1% to $0.7035 after inflation rose 1.3% in the third quarter, up from 0.6% in the previous quarter. The trimmed mean measure was 1%, leaving its annualised rate at 3.6%. The US dollar index rose 0.3% on Tuesday to 102.40, while the US 10-year Treasury yield was unchanged at 4.9967%.
