The New Zealand dollar gained after minutes of the last Federal Reserve policy makers' meeting showed a widespread desire for more stimulus to underpin the world's biggest economy. The greenback tumbled against the yen after the minutes were released.
The New Zealand dollar rose to 81.32 US cents from 80.84 cents at 5pm in Wellington yesterday. The trade-weighted index edged up to 72.85 from 72.73.
Minutes of the Federal Open Market Committee's July 31-to-Aug. 1 meeting say many committee members "judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery."
That's stoked speculation the Fed could act in September making it a double-whammy month with action also expected from the European Central Bank.
"Most people seem to be aiming for September - it could make September a pretty massive month," said Alex Sinton, senior dealer at ANZ New Zealand. "The kiwi is going to be well supported."