You are using an older browser version. Please use a supported version for the best MSN experience.

Kiwi little changed after RBNZ stands pat

NZ Newswire logoNZ Newswire 23/03/2017 Rebecca Howard

The New Zealand dollar was little changed on Thursday, retreating from an earlier gain after the central bank reiterated rates will be on hold for the foreseeable future.

It came as markets await the outcome of a US vote to repeal Affordable Care Act, also known as Obamacare.

The kiwi fell to US70.39c as at 5pm in Wellington versus 70.50c as at 8am and from 70.30c late Wednesday.

The central bank kept the official cash rate unchanged at 1.75 per cent, as expected, Thursday.

ANZ Bank New Zealand senior economist Philip Borkin said the statement may have weighed on the kiwi as the market was possibly looking for "something more" about the fact that inflation was going to get back to 2 per cent shortly, the mid-point of the central bank's target range.

"They might have been expecting them to shift that bias slightly,'' he said. Instead, Reserve Bank governor Graeme Wheeler reiterated that "monetary policy will remain accommodative for a considerable period."

The kiwi "just unwound a little bit," said Mr Borkin. There is also "plenty going on in the US at the moment. Markets are moving on headlines about the possible repeal of the Affordable Care Act".

"People are looking at that as a watershed as to whether Trump will be able to get many of his other policies in play," he said.

The kiwi dollar rose to 56.40 British pence from 56.36 pence late Wednesday. Markets were jittery after a suspected terrorist killed four and injured dozens of pedestrians in London before crashing his car near the gates of Parliament.

The New Zealand dollar traded at A91.91c from 91.85c, fell to 78.37 yen from 78.48 yen and rose to 4.8482 yuan from 4.8394 yuan. It rose to 65.25 euro cents from 65.11 cents.

image beaconimage beaconimage beacon