Dollar Holds Two-Week High Ahead of Fed Decision; Kiwi Slumps as RBNZ Unexpectedly Holds Rates

The U.S. dollar held at a two-week high on Wednesday ahead of central bank policy decisions, with the Federal Reserve widely expected to leave rates unchanged while signaling the probability of a December move. The dollar index rose 0.3% on Tuesday to 102.40, its highest since October 14. The New Zealand dollar sank as much as 1.7% to $0.5585 after the Reserve Bank of New Zealand unexpectedly held rates at 2.75%, defying a Reuters poll in which 22 of 27 economists forecast a hike. The euro was flat at $1.1129 and the pound unchanged at $1.3307, while the dollar slipped 0.1% to 157.81 yen. Fed funds futures priced a 91% probability the FOMC holds rates, CME's FedWatch showed. The Australian dollar rose 0.1% to $0.7035 after third-quarter inflation came in at 1.3%, with trimmed mean core inflation at 1% and the annualized rate at an above-target 3.6%. Bitcoin was flat at $80,736.07.