The New Zealand dollar had another quiet day as the Reserve Bank left its official cash rate unchanged at 6.50 per cent, in line with market expectations.
The kiwi traded at 44.73USc at about 5 pm, near its first steps around 44.60c.
"It has been very, very quiet. The Australian dollar's had a bit of a mixed day with the CPI (consumers price index), and the kiwi's really just followed that around," one dealer said.
Australian consumer prices rose less than expected in the fourth quarter, paving the way for the central bank to cut interest rates in February to spur domestic demand.
Consumer prices rose 0.3 per cent in the December quarter - a third of the 0.9 per cent gain expected and compared with a 3.7 per cent rise in the previous quarter.
Reserve Bank Governor Dr Don Brash's decision to leave rates unchanged was despite the annual inflation rate's being well above the mandated 0-3 per cent band. Dr Brash cited the rise of the dollar and the world economic slowdown as reasons for not lifting rates.
Market opinion was that the bank's next move would be an easing.
- NZPA
<i>Currency:</i> Kiwi as steady as the cash rate
AdvertisementAdvertise with NZME.