The New Zealand dollar ended today near where it started though trading was volatile overnight around statements by the US Federal Open Market Committee (FOMC). By 5pm the NZ dollar was US67.28c compared to US67.32c at 8am and US66.48c at 5pm yesterday. The NZ dollar quickly fell half a cent to US66.80c after the FOMC statement shortly before the local market opened. It then raced up to US67.65c before settling to spend most of the day in a range between US67.05c and US67.30c. The US dollar dipped in Asian trading as investors again became more comfortable with alternatives in the wake of the FOMC statement. The FOMC kept interest rates unchanged but its statement that "economic activity is levelling out" was seen as a step toward acknowledging a recovery was under way. The US central bank is also slowing the space at which it pumps money into the economy through purchases of US Treasuries, though it is not changing the amount of the programme. The NZ dollar rose against the European and Japanese currencies, buying 0.4732 euro at 5pm from 0.4698 at the same time yesterday, and 64.57 yen from 63.50. Against the Australian dollar, the NZ dollar was A80.48c from A80.60c, while the trade weighted index lifted to 62.78 from 62.24.

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