Ammon News - The U.S. dollar held firm on Wednesday on the back of tariff concerns and tense Russia-Ukraine negotiations, while the New Zealand dollar slid after the central bank delivered a super-sized interest rate cut.

The Reserve Bank of New Zealand reduced its benchmark rate by 50 basis points to 3.75% on Wednesday as widely expected. The central bank has now cut rates by 175 basis points since August as the central bank races to boost a sluggish economy and curb rising unemployment.

The kiwi was last down 0.3% at $0.5687 following the decision and bank commentary that suggested more cuts were likely.

In the broader market, investors sized up the latest note in U.S. President Donald Trump's tariff crescendo and uncertainty after initial Russia-Ukraine peace talks finished without Kyiv or Europe at the table.

A majority of economists polled by Reuters this month expect another 50-basis-point cut in April.

Ukraine President Volodymyr Zelenskiy said no peace deal could be made behind his back. He postponed his visit to Saudi Arabia planned for Wednesday until March 10 to avoid giving "legitimacy" to the U.S.-Russia talks.

Markets have priced in about 35 basis points of cuts for 2025.

The dollar index , which measures the greenback against a basket of rivals, rose 0.04% to 107.04.

The yen strengthened 0.05% to 152 per dollar. Japan's solid October-December GDP data on Monday, coupled with recent strong inflation, has bolstered rate hike bets.

Sterling was flat at $1.2613 after brushing a two-month high of $1.2641 in early trade on Wednesday. An inflation reading for the UK is scheduled later on Wednesday, following Tuesday's data showing accelerating British wage growth.

The Australian dollar ticked down 0.07% to $0.63495 after data showed domestic wages rose at the slowest annual pace in more than two years in the fourth quarter. Reuters