The New Zealand dollar retreated against its US counterpart today as the greenback retained its strength despite disappointing US employment data. At the same time, the kiwi posted gains versus the Japanese yen.
The monetary policy outlook plays a significant role in performance of the New Zealand currency. While it was rallying previously on expectations of interest rate hikes, the kiwi lost support from this factor after the Reserve Bank of New Zealand said that it is going to pause the cycle of interest rate increases. Meanwhile, the US dollar is still supported by the outlook for tighter monetary policy, while the yen is under pressure from prospects for additional stimulus.
NZD/USD declined from 0.8306 to 0.8280 as of 18:26 GMT today. NZD/JPY rallied from 87.23 to 87.64.
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