New Zealand dollar falls sharply after RBNZ statement

SYDNEY: The New Zealand dollar fell sharply on Thursday after the country's central bank was seen as sounding a bit more dovish following a widely expected decision to leave interest rates unchanged.

The kiwi, already under pressure against a firmer US dollar, dropped to a session low around $0.7766 from $0.7820. It last traded at $0.7782.

Catching the market's attention was the fact that the Reserve Bank of New Zealand (RBNZ) did not repeat the phrase that it "expects some further policy tightening will be necessary" in the post-meeting statement.

The central bank again described the level of the local currency as unjustified and unsustainable.