More than any other major currency the NZ dollar was held back by interest rate expectations over the shortened pre-Easter week. Following the cut by the Reserve Bank of New Zealand a fortnight ago, and its warning that there could be more to come, the Kiwi had been feeling the pinch. The downward pressure was relieved somewhat when the Federal Reserve said a week ago that it would probably only raise rates twice this year but was retightened this week as a series of Fed officials mentioned the possibility of a rate increase next month.
The NZ dollar also felt the negative effects of a flight to safety following the atrocities in Belgium on Tuesday. Sterling felt them even more, becoming the worst-performing major currency as investors dialled up the risk of Britain's departure from the EU. Overall the Kiwi lost one and a half US cents while strengthening by three quarters of a cent against sterling.