Dollar static ahead of rate declaration

File photo / Dean Purcell

The New Zealand dollar was little changed yesterday with a holiday in Australia reducing trading in this part of the world and major interest rate announcements due today.

The NZ dollar was at US76.66c at 5pm from US76.58c at 8am and US76.49c at 5pm on Tuesday.

It rose slightly in early morning trading when a late flurrying of buying erased earlier losses on Wall Street. This improved the appetite for risk.

But event risk remains with the Federal Reserve's open market committee due to make a statement at 8.15am New Zealand time today and the Reserve Bank of New Zealand due to pronounce on the official cash rate at 9am.

Dealers said it would be a double whammy for the market though the New Zealand central bank is expected to keep its rate unchanged at 3 per cent.

The NZ dollar held its ground against a range of currencies yesterday and against the Australian was at A76.90c at 5pm from A76.93c at the same time on Tuesday. It was at €0.5603 from €0.5602 on Tuesday and at 62.92 from 63.10 on Tuesday. The trade weighted index was slightly higher at 68.33 from 68.20.

- NZPA