Dollar off 1-mth low, kiwi cedes post-rate hike gain

  • Dollar rises after two days of falls
  • Kiwi up as much as 0.8% at one point after 50 bps rate hike
  • Euro slips from one-month high vs dollar

LONDON, May 25 (Reuters) – The U.S. dollar snapped a two-day losing streak on Wednesday as Treasury yields paused recent falls, its gain taking the edge off the euro as well as the kiwi dollar which had been lifted earlier by a hawkish central bank message.

The Reserve Bank of New Zealand became the latest central bank to raise interest rates by half a point. While that move was expected, it also provided hawkish guidance on its policy path, noting a larger and earlier hike reduced the risk of inflation becoming persistent. read more

That had helped the kiwi dollar rise as much as 0.8% at one point to a three-week peak of $0.6514. But as the U.S. dollar gained momentum, it ceded most of those gains to trade 0.2% higher at $0.648.

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