The New Zealand dollar dipped as investors prepare for the Federal Reserve's policy review this week and will be looking for signs the world's biggest central bank will raise interest rates later this year.

The kiwi slipped to US69.79c as at 5pm yesterday from US69.89c at 8am and US69.97c on Friday in New York. The TWI decreased to 74.98 from 75.06 last week.

Investors anticipate Fed chair Janet Yellen will be more positive in her policy view after stronger than expected manufacturing and employment data in recent weeks.

The local currency fell to A93.35c from A93.65c last week ahead of Australian inflation data tomorrow. It dropped to 4.6598 yuan from 4.6705 yuan last week and was little changed at 74.17 from 74.20. It fell to 63.58 euro cents from 63.73c last week and slipped to 53.14p from 53.36p.