Dollar weakens, NZD climbs on delayed rate hikes
The dollar performed weakly on Wednesday morning in Asia. Meanwhile, the New Zealand dollar (NZD) recorded gains following the latest policy statement of the Reserve Bank of New Zealand (RBNZ).
The U.S. Dollar Index that measures the greenback against other major currencies dropped 0.08% to 93.073 by 11:51 PM ET (3:51 AM GMT).
The USD/JPY pair climbed 0.05% to 109.62.
The AUD/USD pair jumped 0.23% to 0.7265, while the NZD/USD pair tallied a 0.28% increase to 0.6943.
The USD/CNY pair fell 0.03% to 6.4835, and the GBP/USD pair grew 0.12% to 1.3756.
The RBNZ maintained its interest rate at 0.25% based on its policy decision released today. The central bank was prompted to delay its planned interest rate hike due to New Zealand’s newly imposed COVID-19 lockdowns.
Investors are now expecting a 60% possibility of an increase in October.
RBNZ senior market strategist Jason Wong said the prospect depends on the duration of lockdown.