The New Zealand dollar held near a three-month high amid speculation policymakers from the European Central Bank and the Federal Reserve will announce additional policy measures to shore up the global economy.
The New Zealand dollar rose as high as 81.19 US cents overnight. It traded at 80.98 cents just
before 8am little changed from 80.99 cents yesterday at 5pm. The trade weighted index was largely unchanged at 72.85 from 72.93.
The Fed's two-day meeting began yesterday in Washington DC, and follows government figures showing US consumer spending stagnated in June. That's supporting bets chairman Ben Bernanke will be forced to add more stimulus to the world's largest economy. European policymakers will meet today in Frankfurt. Last week, ECB President Mario Draghi pledged to do whatever it takes to preserve the single currency, suggesting the bank may intervene in bond markets to support ailing euro-area economies.
"The only show in town this week is the ECB and FOMC," said Alex Sinton, senior dealer at ANZ New Zealand. "It's not the job of central banks to bail out fiscally irresponsible governments, but that appears to be what markets are hoping for."
Central Banks on both sides of the Atlantic will release the statements from their monetary policy meetings on Thursday.
