Dollar Holds Steady, New Zealand Dollar Plummets After Rate Cut

9 Oct 2024 , 10:44 AM

The dollar sagged flat on Wednesday, providing some comfort to the yen and other major currencies following a dramatic surge to a seven-week high last week, as investors paused to examine the US interest rate outlook.

The dollar index, which measures the greenback against a basket of currencies, rose 0.11% to 102.6, close to Friday’s seven-week high of 102.69.

The euro fell 0.14% to $1.0965, while the pound fell 0.15% to $1.3083, near to its more than three-week low of $1.30595 set on Monday.

The dollar/yen moved in a limited range, last seen around 148.35 yen, after reaching a seven-week high of 149.10 on Monday.

The New Zealand dollar fell to its lowest level since August 19 at $0.60705, after the Reserve Bank of New Zealand (RBNZ) reduced interest rates by 50 basis points, leaving the door open for further more aggressive monetary easing.

The light U.S. data calendar this week gives a reprieve after last Friday’s robust jobs report propelled the dollar higher and had investors moderating the expected extent of future interest rate cuts.

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