Kiwi falls as Bernanke lacks specifics
Wed, 18 Jul 2012 9:16a.m.
The New Zealand dollar fell after Federal Reserve chairman Ben Bernanke gave the US congress no clear signal on the timing of any extra economic stimulus.
The New Zealand dollar fell as low as 79.27 US cents in northern hemisphere trading from 79.96 cents at 5pm on Tuesday in Wellington. It traded at 79.74 cents at 8am.
The trade weighted index decreased to 72.26 from 72.40.
The Fed's Dr Bernanke told lawmakers reducing unemployment is likely to be "frustrating slow" and the Federal Open Market Committee is considering whether additional stimulus will be needed to reduce the jobless rate, which has been stuck above 8 percent since February 2009.
"Currencies flew around all over the place as investors scoured the details for clues on future Fed action," said Mike Jones, market strategist at Bank of New Zealand.
"In the end, Bernanke offered nothing particularly new, so most currencies have settled back to their levels."
The New Zealand dollar declined to 77.33 Australian cents at 8am from 77.53 cents at 5pm.
It was little changed at 64.92 euro cents from 65 cents and increased to 63.16 yen from 63.06 yen.
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