The kiwi was little changed at 84.15 US cents at 8am in Wellington from 84.13 cents at 5pm yesterday.
The New Zealand dollar slipped after a report showing US inflation accelerated more than expected prompted investors to mull the outlook for tighter monetary policy in the world's biggest economy.
The kiwi edged lower to 86.48 US cents at 8am in Wellington from 86.56 cents at 5pm yesterday. The trade-weighted
index was a touch higher at 80.74 from 80.70 yesterday.
The US dollar index, which measures the greenback against a basket of currencies, rose after a report showed US inflation accelerated at a faster pace, raising the prospect of higher US interest rates. The data was released ahead of the Federal Reserve's meeting with Chair Janet Yellen scheduled to announce the Fed's monetary policy intentions at 6am tomorrow.
"The New Zealand dollar slid along with other major currencies against the US dollar overnight," Raiko Shareef, currency strategist at the Bank of New Zealand, said in a note. "The US dollar was ascendant last night, as signs of burgeoning inflationary pressure put investors on guard for the Fed's policy meeting tonight."
A Bloomberg News poll released overnight showed more than half of 56 economists thought futures prices were underestimating the likely pace of US monetary policy tightening over the next two years. Traders are currently pricing the Fed Funds Rate at 0.77 percent by the end of 2015, lagging the Fed's own projections from March suggesting 1 percent by the same point, said the BNZ's Shareef.
