30 Jan 2014

$NZ down against USD

11:02 am on 30 January 2014

The New Zealand dollar has fallen a cent against the US dollar after the Central Bank left its key interest rate unchanged and the US Federal Reserve reduced its money printing programme further.

300114. Photo Diego Opatowski / RNZ. dOLLAR DOWN

Photo: RNZ

The New Zealand dollar initially fell to 81.7 US cents before bouncing back at around 82 US cents.

The Federal Reserve will reduce its bond buying programme from February by another $US10 billion per month to $US65 billion from $US85 billion per month last year.

The fed has been buying bonds in an effort to keep interest rates low and stimulate growth.

The BBC reports the decision to keep slowing the purchases of long-term bonds was backed by all members of the monetary policy committee for the first time since 2011.

The Fed also left its overnight interest rate unchanged at 0% - the level it has been at since December 2008.

It was the final meeting for chairman Ben Bernanke, is set to take over once he who is to step down at the end of this week. Janet Yellen will be the new chair.