The New Zealand currency markets had a "very dull day" with investors waiting to see whether the United States Federal Reserve raises interest rates overnight, a forex dealer said.
The New Zealand dollar closed spot on 45USc from 45.22c on Monday and the aussie was also down on the local market, closing at 58.87USc (59.02c).
The dealer said there was very little interest in the kiwi, which traded in a 44.90-45.02c range.
"The market has barely traded all afternoon - there has been very little local business. People are sitting and waiting for the Fed," he said.
"The US is the powerhouse at the moment and if they're not going to put up rates, people will pour their money into the US. That could put a bit of pressure on the kiwi - it doesn't take much to push the kiwi lower at the moment."
On the cross-rates the kiwi was at 76.42Ac and 48.80 yen. The trade-weighted index was lower at 50.94 (51.07) and with the 90-day bill yields at 6.68 per cent (6.69), the monetary conditions index eased to minus 601 (minus 589).
- NZPA
<i>Currency:</i> Investors wait on Fed
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