Kiwi weakened vs peers in Asian hours, as RBNZ says inflation expectations dip

The kiwi dollar declined against the other major currencies in the Asian session on Tuesday, after the Reserve Bank of New Zealand said inflation expectations have weakened.

A quarterly survey published by the Reserve Bank of New Zealand showed that two-year ahead inflation expectations in New Zealand eased to 1.80% in the first quarter from 2.06% in the fourth quarter.

Inflation expectations for one-year fell to 1.11% from 1.59%, the quarterly report revealed. The survey was conducted by the Nielsen Company.

Market players await the US Federal Reserve Chair Janet Yellen's testimony before the House and Senate due later in the day.

Yellen's remarks over the next two days are likely to be closely analyzed for hints as to when an interest rate hike may happen in the US.

Overnight, the dollar capped gains against the other major currencies on Monday, after the release of disappointing U.S. home sales data, although concerns over whether Greece will announce the necessary reforms for its bailout extension continued to support the demand for greenback.