LONDON—The dollar wallowed near two-month lows on Wednesday after weak data supported the view that the Federal Reserve may not need to raise rates much further, while the New Zealand dollar hit two-month highs after a larger-than expected rate hike.
With the all-important U.S. monthly employment report just two days away, activity across the market was a little more subdued than it has been in recent weeks.
The Reserve Bank of New Zealand unexpectedly raised interest rates by 50 basis points (bps) to a more than 14-year high of 5.25 percent. In a Reuters poll, 22 of 24 economists had forecast just a 25 bps hike….