The New Zealand dollar extended its decline to a seven-week low as growing speculation the Federal Reserve will hike interest rates this month put the focus on a speech by Fed chair Janet Yellen tonight.
The kiwi dollar fell to 70.54 US cents and earlier touched 70.46 cents, the lowest since January 12, from 71.33 cents late yesterday. The trade-weighted index fell to 77.34 from 77.90.
See live rates for the NZ-US $ below. Click for more information:
The US dollar index rose to its highest level since early January as a third Fed official this week, Fed governor Lael Brainard, said tighter monetary policy "will likely be appropriate soon". Her comments in notes for a speech to Harvard University follows those of New York Fed president William Dudley and San Francisco Fed president John Williams, who both indicated a rate hike made sense. Labor Department figures showing Americans filing for unemployment benefits fell to a 44-year low last week have also stoked expectations of an imminent rate hike and increased the focus on Yellen's speech in Chicago on Friday. Fed vice chair Stanley Fischer is also scheduled to speak tonight.