The New Zealand dollar was under pressure due to troubles in the European Union and volatility experienced in the stock markets. Euro was also under pressure due to these factors.

The New Zealand currency was at US66.15c at 5pm from US66.78c at 8a.m. But this was higher than the Tuesday’s price of US66.34c. The S&P futures index also declined and the same was also responsible of the weak show by the New Zealand currency.

The Bank of New Zealand is not overly concerned with the fall in the price if the dollar and it remained cautious. The Reserve Bank of New Zealand (RBNZ) will also release its monetary policy tomorrow. It is expected that it will raise the cash rates from 2.5 to 2.75% in the latest revision.

Market experts and investors will be keenly following the market for the long term impact the policy will have on the market. Central banks across the globe are carefully looking at global trends before making any changes to their country’s monetary policy. The volatility in the markets and European Union woes has also increased the concerns of central banks across the globe. 

The New Zealand dollar fell compared to the Australian dollar. The Reserve Bank of Australia has also increased its official cash rates by 150 points to 4.5%.