The New Zealand dollar gained after weaker-than-expected US inflation data added to doubts the Federal Reserve will hike interest rates for the third time this year.
The kiwi traded at 73.09 US cents as at 8am in Wellington, from 73.18 cents in New York on Friday and up from 72.73 cents in Wellington at the end of last week. The trade-weighted index rose to 76.99 from 76.82 in New York.
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The US consumer price index excluding food and fuel prices rose 0.1 per cent in July, half the pace expected, while the annual rate was unchanged at 1.7 per cent. The US dollar index fell following the data, which undershot expectations for the fifth straight month, according to Bank of New Zealand. The ongoing war of words between the US and North Korea, meanwhile, has eroded risk appetite, with the volatility index, or VIX, touching its highest level this year on Friday.