The New Zealand dollar fell after the Federal Reserve kept US monetary policy unchanged even while noting the world's biggest economy may need help. The greenback was broadly stronger after the statement.
The kiwi dollar fell to 80.87 US cents from 81.04 cents at 5pm in Wellington yesterday. The trade-weighted
index was little changed at 72.97.
The Fed said US economic activity had "decelerated somewhat" since its policymakers last met but failed to provide fresh clues on potential action to revive growth, saying it expects growth to "remain moderate" in coming quarters.
Traders are now awaiting the European Central Bank's statement tonight, amid speculation it may dust off its bond purchase programme and signal more aid to banks.
The Fed statement "constituted disappointed for the market", said Imre Speizer, market strategist at Westpac. "At a minimum, people were expecting the period of low interest rates to be extended from late 2014 to 2015."
