New Zealand Dollar Falls After RBNZ's Cautious Guidance

Dow Jones09-02 15:56

0756 GMT - The New Zealand dollar falls after the Reserve Bank of New Zealand gave cautious guidance following the latest rate increase, MUFG analyst Lee Hardman says in a note. As RBNZ Gov. Anna Breman said, the timing of the next increase could be "highly uncertain," with the probability of a hike in October falling to around 36% from 65% before the meeting, the analyst says. "Sticking to plans for gradual rate hikes has disappointed building market expectations for faster pace of tightening, which has been encouraged by rising energy prices over the summer," Hardman says. This latest policy update will likely weigh on the kiwi's strength in the near term, he adds. The New Zealand dollar is last 1.0% lower at 0.59 U.S. dollar.

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