TOKYO/LONDON, Oct 9 (Reuters) – The New Zealand dollar fell on Wednesday after New Zealand’s central bank cut its key rate sharply. At the same time, the dollar is rising against most currencies and has reached a new high of almost two months against a basket of its peers.
The Kiwi fell 1.25% to $0.6061 by 15:55 Moscow time, hitting an almost two-month low during the session, after the Central Bank of New Zealand on Wednesday cut its key rate by 50 basis point and announced the possibility of further currency reduction. policy at an equally aggressive pace.
“We predict headwinds will develop in the near future (for the New Zealand dollar), including a hawkish Fed revaluation, potential geopolitical upheaval, reduced appetite risk ahead of the US election, trade volatility, and now a more dovish central bank than expected. from New Zealand,” said HSBC’s Lenny Jean.
China’s Finance Ministry plans to hold a press conference on fiscal policy on Saturday, raising expectations for economic stimulus measures.
However, the Australian dollar fell 0.43% to $0.6716 .
Investors are waiting for the publication of the summary of the Fed meeting in September on Wednesday night and the US consumer price index (CPI) on Thursday.
The dollar index against a basket of six major currencies rose 0.24% to 102.74.
The euro fell 0.25% to $1.0953.
Sterling fell 0.21% to $1.3077, after touching a near one-month low earlier in the session.
The Japanese yen fell 0.45% against the dollar to 148.86.
Japanese Prime Minister Shigeru Ishiba has called early elections for October 27, days before the Bank of Japan meeting and the US presidential election on November 5.
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(Brigid Riley and Alun John)
2024-10-09 13:38:00
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