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NZ Dollar Makes Small Gains Against Greenback As Fed Meets

Fuseworks Media
Fuseworks Media

Wellington, June 25 NZPA - The New Zealand dollar made small gains against a generally weakening United States currency overnight, as markets awaited the outcome of the Federal Reserve's two-day monetary policy meeting.

By 8am the kiwi was buying US75.77c, from US75.61c at 4.30pm yesterday.

The US dollar retreated as a plunge in US consumer confidence and declining home prices raised doubts about the Fed's ability to hike interest rates to stem inflation.

The greenback struggled as the Fed began its meeting, with analysts expecting the US central bank to hold interest rates steady at 2 percent when it makes its announcement tomorrow morning (NZT).

Analysts said the overnight data complicated matters for the Fed as it tried to prevent the economy from slipping into recession while grappling with rapidly rising food and energy prices.

While the kiwi has climbed from multi-month lows against the US currency this month, it continued to flirt with multi-year lows against the Australian dollar.

At today's local open the NZ dollar was at A79.37c, having got down to around A79.10c earlier today, from A79.43c at 4.30pm yesterday.

The kiwi also eased against the euro and the yen, down to 0.4866 euro from 0.4872 and to 81.68 yen from 81.73. The trade weighted index was 67.87 at 8am from 67.86.

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