The chances of an interest rate rise in the United States in September rose early yesterday only to diminish substantially later in the day.
The benchmark overnight interest rate was kept in a range of 0.25% to 0.5%.
A rate rise in the US is seen as crucial to the New Zealand Reserve Bank in its quest to have the dollar fall against the US and Australian currencies.
Craigs Investment Partners broker Chris Timms said all eyes were on the Federal Reserve as its two-day monetary policy meeting came to a close.
The central bank chose to hold rates, as was widely expected.
But it said in its commentary the near-term risks to the economic outlook had been diminished, suggesting a rate rise in September might be appropriate.
"Following that statement, market expectation of a September rate rise dramatically reduced after poor durable goods data dented sentiment.''
The Dow Jones Industrial Average finished almost flat with a 0.01% fall, he said.
Fed chairwoman Janet Yellen said the US economy had expanded at a moderate rate and job gains were strong in June. Household spending had been growing strongly, pointing to an increase in labour utilisation.
The Fed noted inflation expectations were on balance little changed in recent months.
The central bank had held rates stead since December when it raised them for the first time in nearly a decade and signalled another four rate increases were possible this year.
That was scaled back to two hikes this year after Fed policymakers issued new projections in which they also lowered longer-term growth estimates for the US economy.
Despite a strong rebound in job growth last month, and an economy near full employment, most Fed policymakers had urged caution in raising rates until there was solid progress in moving inflation towards the 2% target.
Inflation was now 1.6% and had been below target for more than four years.
A global economic slowdown, financial market volatility and uncertainty over the impact of Britain's decision to leave the European Union had forced the Fed to delay another rate increase, Mr Timms said.
"The US economy has suffered little initial impact from the Brexit vote. A string of better-than-expected economic data recently, as well as an easing in financial conditions, have also calmed nerves.''
There are three more Fed policy meetings left this year - September, November and December.
A rate rise in November was generally seen as unlikely because it would occur
just a week before the US presidential elections, he said.
Fed officials would now turn their attention to today's first initial estimate of second-quarter GDP, which was expected to show a "healthy rebound'' from the previous quarter.
The Bank of Japan announcement was due out today at the end of its two-day policy meeting and a rate call could still go either way, Mr Timms said.
