The New Zealand dollar traded around the US53c level ahead of the much-anticipated interest rate announcement by the Reserve Bank tomorrow morning.
The NZ dollar was trading at US53.15c by 5pm from US53.00c at 8am and US52.90c at 5pm on Tuesday night.
The market was quiet today ahead
of the monetary policy statement, with the currency trading between US52.84c and US53.49c during its domestic session.
"The market is pretty much on hold for tomorrow," said Murray Hindley, chief foreign exchange dealer at ANZ Institutional Bank.
"People will be looking at the tone of the text for clues about further rate cuts," he said.
The market is anticipating a cut of between 100 and 150 basis points in the official cash rate, which is 6.5 per cent.
This week the Reserve Bank of Australia lowered rates by 100 basis points to 4.25 per cent, taking the rate to its lowest level in 6-1/2 years.
That raised expectations other central banks may follow suit.
The NZ dollar eased against its Australian counterpart after the rate cut across the Tasman, and overnight reached its lowest level against the aussie in more than two months, around A81.95c.
It then managed to recover some ground to be at A82.20c by 5pm.
Against the euro, the kiwi was 0.4175 by 5pm from 0.4192 at yesterday's local close, while the NZ dollar was little changed against the yen at 49.65 by 5pm.
The trade weighted index was 53.15 at 5pm from 53.96 yesterday.
- NZPA
