The kiwi dollar’s NZD/USD pair slipped around 1% after the Reserve Bank of New Zealand kept its official cash rate at 2.25% and signalled policy would remain supportive as inflation returns to target

Most Asian currencies were little changed on Wednesday in subdued Lunar New Year trade, while the New Zealand dollar weakened after the country’s central bank held interest rates steady and reiterated an accommodative policy outlook.

Trading volumes were thin with major markets including China and Hong Kong closed for the holiday, muting moves in Asian foreign exchange.

The kiwi dollar’s NZD/USD pair slipped around 1% after the Reserve Bank of New Zealand kept its official cash rate at 2.25% and signalled policy would remain supportive as inflation returns to target.

The bank expects price growth to drop toward the 2% midpoint over the next year amid spare capacity and modest wage pressures.

Markets pared expectations for near-term tightening, with rate-hike odds pushed further into late-2026, weighing on the currency.

The generally dovish tone significantly moves the balance of risk away from an earlier start to the tightening cycle, Westpac analysts said in a note.

We continue to expect that there will be no further policy easing this cycle and that the RBNZ will begin to raise the OCR from the December 2026 meeting, they added.

Elsewhere, Japan released January trade data showing exports climbed 16.8% year-on-year while imports dropped, leaving a smaller-than-expected 1.15 trillion-yen deficit.

The yen’s USD/JPY pair edged 0.1% higher.

Other currencies remained broadly range-bound.

The won’s USD/KRW pair traded flat, while the Singapore dollar’s USD/SGD rose 0.1%.

The yuan’s USD/CNH offshore pair also traded largely unchanged, while the Indian rupee’s USD/INR gained marginally.

The Australian dollar’s AUD/USD pair dropped 0.2%.