By Ilya Spivak
The US Dollar traded lower against its leading counterparts as front-end Treasury bond yields declined, undermining rates-based support for the benchmark currency. The move may amount to follow-on momentum from last week’s FOMC rate decision. The greenback slumped after Chair Yellen and company issued a broadly expected rate hike but offered nothing to suggest a steeper tightening path thereafter.
The New Zealand Dollar outperformed despite data showing consumer confidence ebbed in the first quarter and service-sector activity growth slowed in February. The currency’s strength may be reflecting pre-positioning ahead of this week’s RBNZ meeting. A rate hike isn’t expected but markets price in at least one increase in the next 12 months. The statement accompanying the announcement may offer timing clues.
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