Australia’s dollar was 0.2 percent from a five-year low versus New Zealand’s currency before the larger nation’s Reserve Bank meets amid repeated calls from its policy makers for a lower exchange rate.
The dollar fell versus the euro and the yen after Federal Reserve Chairman Ben S. Bernanke said the central bank’s main interest rate will probably remain near zero for a “considerable time” after asset purchases end.
The dollar rose against most major peers as Federal Reserve officials said they might reduce their $85 billion in monthly bond purchases “in coming months” as the economy improves, minutes of their last meeting show.
The Australian dollar fell for a fourth straight week versus its U.S. counterpart as European leaders’ struggle to agree on measures to resolve the region’s debt crisis curbed demand for higher-yielding assets.
Australia’s dollar rebounded from the lowest since September 2010 on speculation its biggest quarterly decline in almost five years was excessive and amid bets the Reserve Bank will refrain from cutting rates tomorrow.
Australia’s dollar declined against most of its major peers after a preliminary survey showed China’s manufacturing is expanding at a slower pace, dimming the outlook for South Pacific nation’s exports.