Investing.com - The kiwi gained in Asia on Thursday despite a central bank 25 basis points cut in the official cash rate to a record low 2% and saif further reduction were possible if needed.
NZD/USD traded at 0.7280, up 0.93% after the decision, Elsewhere, AUD/USD traded at 0.7714, up 0.13%, while USD/JPY changed hands at 101.21, down 0.07%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 95.59.
Overnight, the dollar remained broadly lower against the other major currencies on Wednesday, as Tuesday’s downbeat U.S. data continued to dampen optimism over the strength of the economy.
The greenback weakened after data showed that U.S. nonfarm productivity dropped by 0.5% in the second quarter, disappointing expectations for a 0.4% rise, after a 0.6% slip in the three months to March.
The weak data overshadowed last week’s strong U.S. nonfarm payrolls report, which had boosted expectations for a rate hike by the Federal Reserve before the end of the year and sent the U.S. dollar broadly higher.