NZD Falls, Central Bank’s Outlook Trims Weekly Losses

The New Zealand dollar ended this week with losses as traders shunned riskier currencies ahead of the next week’s Federal Reserve monetary policy meeting. The decline was limited as the central bank of New Zealand itself considers raising interest rates in the future.

The Fed will announce its decision on December 18. Market participants were speculating that moderate withdrawal of stimulus is possible. Such talks hurt the appeal of assets with higher yield.

The Reserve Bank of New Zealand maintained its policy unchanged. At the same time, the bank reiterated its plans to raise interest rates relatively soon.

The Swiss National Bank also kept its monetary policy without changes.

NZD/USD closed at 0.8262 after falling from 0.8285 to 0.8183 during the week. NZD/JPY was down from 85.35 to 84.03, but bounced to close at 85.29.

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