The New Zealand dollar was faring badly on Thursday in an otherwise relatively muted morning session for Asia Pacific currencies.

The New Zealand dollar sank as much as 1.8 per cent against its US counterpart after the Reserve Bank of New Zealand held its key interest rate at a record low of 1.75 per cent and signalled it did not expect to raise rates until late 2019.

It had pulled back to trade down 1.7 per cent at $0.6825. The Australian dollar was off 0.3 per cent at $0.7343.

South Korea’s won was among the only currencies to make gains in the region, rising 0.2 per cent to Won1,133.4 per dollar after Wednesday’s inauguration of President Moon Jae-in.

Outside the region the Canadian dollar had shed 0.7 per cent against the greenback to C$1.3733 after Moody’s downgraded its ratings for six Canadian banks.

The dollar index tracking the greenback against a basket of peers was flat at 99.642.

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