The dollars of the South Pacific slumped against the majority of their top rivals on Thursday, tugged down by persistent concerns about what the central bank of the U.S. will do regarding its economy-spurring measures, Bloomberg reports.
Though the Australian dollar rose early during the trading session after the country's unemployment level dropped more than anticipated last month, the Aussie slipped against its cross-Pacific rival currency. The New Zealand dollar was pinched by the Official Cash Rate of the central bank keeping interest rates unchanged at record lows.
"We expect to keep the OCR unchanged through the end of the year," Governor Graeme Wheeler with the Reserve Bank of New Zealand said in a Thursday statement in the aftermath of leaving borrowing rates unchanged, according to Bloomberg. "Despite having fallen over the past few weeks, the New Zealand dollar remains overvalued."
Losses for the Aussie were as high as 0.4 percent, which was about as much as the monetary unit climbed earlier during the trading session. The Kiwi's plunge amounted to roughly 0.9 percent.
Questions remain as to whether the U.S. Federal Reserve will continue or cease its monetary easing policies that spur the economy yet pull down the value of the greenback, according to The Wall Street Journal.
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