Dollar slides on Fed cut bets; kiwi jumps after RBNZ strikes hawkish tone
economictimes.indiatimes.comcentral bank suggested that more rate hikes could be in the offing.
The kiwi jumped more than 1% to hit a four-month peak of $0.6203 after the Reserve Bank of New Zealand (RBNZ) kept interest rates steady, as expected, but revised its official cash rate (OCR) track higher for 2024 and 2025, pointing to further tightening ahead.
«Whilst the RBNZ were expected to hold, their statement struck a hawkish tone by stating that inflation remains too high,» said Matt Simpson, senior market analyst at City Index.
The Australian dollar similarly scaled a four-month top of $0.6670, unfazed by domestic data showing inflation eased by more than expected in October as goods prices fell, while core inflation also edged down.
The Antipodean currencies got a lift from a falling greenback, which tumbled to an over three-month low against a basket of currencies as bets grow that the U.S. Federal Reserve could begin cutting rates early next year.
Fed Governor Christopher Waller — a known hawkish and influential voice at the central bank — on Tuesday flagged a possible rate cut in the months ahead, feeding market expectations that U.S.
