Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up, New Zealand Dollar Eases After Smaller-Than-Expected RBNZ Rate Hike

ForexNov 23, 2021 11:24PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia, paused after a surge following Jerome Powell’s re-appointment as U.S. Federal Reserve Chairman. The New Zealand dollar eased after a smaller-than-expected rate hike from the Reserve Bank of New Zealand (RBNZ).

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.08% to 96.573 by 11:87 PM ET (4:18 AM GMT).

The USD/JPY pair edged down 0.11% to 115. The dollar hit a more-than-four-year high against the yen on Tuesday after two-year Treasury yields surged to their highest levels since March 2020, and Fed funds futures also priced a chance of three rate hikes in 2022.

The AUD/USD pair was down 0.32% to 0.7204 and the NZD/USD pair fell 0.63% to 0.6904.

The USD/CNY pair inched up 0.02% to 6.3920 while the GBP/USD pair inched down 0.01% to 1.3373.

RBNZ hiked its interest rate to 0.75% and raised its long-term cash rate projection by 50 bps as it handed down its policy decision earlier in the day, with the New Zealand dollar falling as far as 0.5% to $0.6915.

Investors had expected a bigger hike and long-term cash rate projection from the central bank, and interest rate swaps reversed sharply afterward.

“The unwind aggressive expectations might be a blueprint for other markets that have become similarly positioned, but in the meantime, the New Zealand dollar could be on the ropes against a rising dollar,” Westpac strategist Imre Speizer told Reuters.

"If it fell below $0.69, I think we're in danger of going below $0.68," he said.

The greenback hit its highest levels in 2021, with bets increasing that the Fed will hike interest rates sooner than expected in response to continuous inflationary pressures. Powell is also perceived to respond sooner and harder to inflation than Lael Brainard, who was also in the running to head the U.S. central bank.

The U.S. will release data, including the minutes from the Fed’s latest meeting, GDP, and initial jobless claims, on Wednesday ahead of a holiday on Thursday.

Across the Atlantic, the Turkish lira fell more than 11% in one session overnight. The lira’s collapse could lead to further capital outflows and potentially put pressure on emerging market currencies globally.

Dollar Up, New Zealand Dollar Eases After Smaller-Than-Expected RBNZ Rate Hike
 

Related Articles

India rupee sees worst week in seven on new variant
India rupee sees worst week in seven on new variant By Reuters - Nov 26, 2021

By Swati Bhat MUMBAI (Reuters) - The Indian rupee saw its worst week in seven on Friday, while the benchmark 10-year yield closed at its lowest in more than two weeks as concerns...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Ganchimeg Pvrew
Ganchimeg Pvrew 16 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ganchimeg
Dave Gillies
Dave Gillies Nov 24, 2021 4:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The RBNZ delivered the "expected" 25bps rate increase. This article is very misleading.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email