NZ dollar slammed by dovish cenbank, USD firm post-Fed

The New Zealand dollar slumped to four-year lows on Thursday as investors priced in a greater chance of rate cuts there, while U.S. dollar bulls focused on the positive in the Federal Reserve's latest policy statement.

The kiwi skidded to $0.7320 after the Reserve Bank of New Zealand opened the door to a possible cut in rates, having only last month flagged that further tightening was needed.

Traders said the move to a neutral stance was expected, but giving an allowance for rate cuts was not.

"For the NZ dollar, a further repricing of RBNZ rate expectations will imply a period of under performance against the G10 crosses, especially given that a number of markets have already undergone a significant repricing of policy expectations in recent months," JPMorgan analyst Sally Auld said.

The kiwi last stood at $0.7323, hovering at lows not seen since March 2011. Against the yen, it slid to its lowest levels in three months at 85.88.

While the RBNZ was unambiguously dovish, the Fed had something for everyone.

The hawks latched onto its upbeat outlook for the economy, while the doves interpreted a reference to global markets as suggesting it might delay any interest rate hike.

The Fed said it would take "financial and international developments" into account when determining when to raise rates, referring to global markets for the first time since January 2013.

Asian indices were broadly lower early Thursday, as a rout in energy stocks and a slew of disappointing corporate earnings weigh on regional markets.

Meanwhile, the Federal Open Market Committee stuck to its vow to be "patient" on hiking interest rates and raised its view of the economy and labor market, even as the central bank anticipates a further decline in inflation.

Overnight, U.S. stocks declined as the energy sector expanded losses after U.S. crude settled down $1.78 at $44.45, its lowest since March 2009. Brent crude oil for March delivery was down $1.22 at $48.38 a barrel.