New Zealand dollar tanks after central bank defies markets' near-certainty it would hike rates

The New Zealand dollar fell sharply on Wednesday, as markets reacted to an unanticipated interest rate decision from the country's central bank. By 8 a.m. ET, the currency was down 1.3% intraday against both the U.S. and Australian dollars , and had also fallen more than 1% versus the British pound , Japanese yen and euro . Against the greenback, the New Zealand dollar is down almost 5% from six months ago. On Wednesday, the Reserve Bank of New Zealand's Monetary Policy Committee voted by a slim majority of four to three to keep its key interest rate steady at 2.75%. Traders had been pricing in a rate hike as nearly certain, and economists polled by Reuters had overwhelmingly forecast rates to rise.