A drop in the value of the Kiwi dollar is "natural" after a change in government, says Finance Minister Grant Robertson.
Speaking on RNZ today, Robertson said markets react to change and that he wasn't especially concerned about the New Zealand dollar dropping below US70c.
"We have policies that are about stimulating good solid job growth, those are the kinds of things that people want to see in the economy," he said.
"Any volatility we've seen is a reaction to a change of government that would happen at any time anywhere in the world and I'm sure the markets will see they can be confident in our government," he said.
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Advertise with NZME.The New Zealand dollar rose in a week that features policy reviews from the Bank of Japan, Federal Reserve and Bank of England as reports of staged tax cuts in the US weighed on the greenback.
The kiwi gained to 68.72 US cents as at 8am in Wellington from 68.58 cents late yesterday. The trade-weighted index rose to 72.92 from 72.78 yesterday.
In New Zealand, traders will be watching for September building permits and October business confidence, which may indicate corporate views about the new coalition government. But offshore events are likely to dominate trading. As well as central bank statements, US President Donald Trump is to announce his choice for new Fed chair this week while US payrolls data on Friday is expected to show a bounceback after a hurricane-related dip. Meanwhile, markets are keeping an eye on the White House after two ex-Trump aides were charged in a Russia probe.
See live rates for the NZ-US $ below. Click for more information:
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Advertise with NZME."While a little stronger overnight, in large part due to a modestly weaker USD, the kiwi is ultimately in consolidation mode right now, and that is something that is likely to persist for a while yet," said Sharon Zollner, senior economist at ANZ Bank New Zealand, in a note. "Today's local business confidence figures will be watched for any impact of political uncertainty on sentiment. However, it is ultimately a week where US developments will hold sway."
Also out later today are China's manufacturing and non-manufacturing PMI reports for October and Japanese industrial production for September. The Bank of Japan is expected to maintain its accommodative monetary policy settings. Tonight features European employment data, inflation and economic growth figures.
The kiwi traded at 52.02 British pence from 52.12 pence yesterday and edged up to 59.04 euro cents from 58.96 cents. It rose to 89.46 Australian cents from 89.17 cents, increased to 4.5671 yuan from 4.5506 yuan and traded at 77.74 yen from 77.79 yen.
