The kiwi fell to 56.46 British pence as at 8am in Wellington. Photo / File
The New Zealand dollar declined against the pound after the Bank of England policy committee kept rates on hold but with a split vote, while it fell against the US dollar in the wake of yesterday Federal Reserve statement that kept intact plans for another rate hike this year.
The
kiwi fell to 56.46 British pence as at 8am in Wellington from 56.64 pence late yesterday. It traded at 72.02 US cents, having touched 71.83 cents overnight, from 72.22 cents yesterday.
The pound rose after the BOE kept its key rate unchanged at 0.25 per cent as expected but it emerged that as many as three policy committee members had voted to raise interest rates.
In the US, investors are mulling the Fed's statement, which projected further rate hikes and plans to start unwinding the central bank's enormous balance sheet, while appearing to downplay weaker-than-expected inflation data. The kiwi is also under pressure following first-quarter economic growth figures yesterday that showed the economy is growing slower than expected.
"This week's run of softer data will doubtless dent the NZD's shiny armour, but while disappointing, the data were only relatively minor misses, and in level terms, New Zealand's economic credentials remain sound," said David Croy, senior rates strategist at ANZ Bank New Zealand, in a note.
