Dollar Off 1-month Low, Kiwi Cedes Post-Rate Hike Gain

A New Zealand ten dollar note sits underneath a United States one dollar bill in the window of a currency exchange teller in Sydney, Australia, on March 10, 2016. David Gray/Reuters

LONDON—The U.S. dollar snapped a two-day losing streak on Wednesday as Treasury yields paused recent falls, its gain taking the edge off the euro as well as the kiwi dollar which had been lifted earlier by a hawkish central bank message.

The Reserve Bank of New Zealand became the latest central bank to raise interest rates by half a point. While that move was expected, it also provided hawkish guidance on its policy path, noting a larger and earlier hike reduced the risk of inflation becoming persistent.