The New Zealand dollar slipped below 71 US cents as investors prepare for the Bank of Japan's policy review today which is expected to inject even more stimulus into the world's third-biggest economy.
The kiwi fell to 70.77 US cents from 71.11 cents late yesterday and was little changed at 74.53 yen from 74.50 yen.
Bank of Japan governor Haruhiko Kuroda is expected to deliver more stimulus to the Japanese economy at the conclusion of the bank's policy meeting today, adding to the government's 28 trillion yen fiscal package announced this week. Japanese policy-makers have been trying to invigorate the economy, although Kuroda has rejected the prospect of using 'helicopter money', where the central bank directly funds the government.
"Expectations are widespread that the BoJ will deliver a reasonably comprehensive easing, possibly including additional rate cuts and more QE," ANZ Bank New Zealand chief economist Cameron Bagrie said in a note. " A higher USD/JPY overnight shows that markets are looking for something big and bold."
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