NZD/USD Rebounds After Fed Holds Interest Rates Steady

The NZD/USD pair climbed to near 0.5790 on Wednesday, rebounding from earlier losses. The move followed a sharp sell-off in the US dollar after the Federal Reserve decided to keep interest rates on hold.

Earlier in the trading session, the pair had been under pressure as traders awaited the Fed’s decision. Once the central bank announced the hold, the dollar index tumbled, lifting the New Zealand dollar.

The recovery in NZD/USD erased the day’s decline and pushed the pair back toward the 0.5790 level. The US dollar’s broad weakness was the primary driver of the reversal.