TOKYO : The U.S. dollar drifted below a one-year high versus major peers on Tuesday as traders waited on key U.S. payrolls data at the end of the week for clues on the timing of a tapering of Federal Reserve stimulus and the start of interest rate hikes.
The New Zealand dollar held close to the previous session's four-day high of US$0.6981, changing hands at US$0.6960 after three days of gains. Markets are priced for a quarter point rate hike when the nation's central bank decides policy on Wednesday. That followed a rally of as much as 2.8per cent since Sept. 3 as traders rushed to price in tapering as soon as next month and possible rate rises next year, while the currency also benefited from safe-haven demand amid worries spanning the risk of global stagflation to the U.S. debt ceiling standoff.
"While the near-term USD bias leans higher, we're wary about chasing the move at these levels," McCormick said.
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