The New Zealand dollar slipped as the greenback benefited from the possibility a new Federal Reserve boss could tighten monetary policy and as the euro was weakened by uncertainty over the Catalonia independence vote.

The kiwi traded at US71.96c at 5pm today versus US72.14c at 8am and US72.05c in New York on Friday. It was little changed at €61.09c from €61.02c last week.

The greenback gained as investors interpreted President Donald Trump's meeting with former Fed governor Kevin Warsh, who is considered more hawkish than current chairwoman Janet Yellen, as a pathway to faster increases in interest rates. Trump will decide within three weeks whether to replace Yellen.

The electoral stalemate was not hurting the dollar as "the market is starting to accept that the downside for the kiwi from the political situation is not really happening", said Martin Rudings, a senior dealer at OMF.


The kiwi traded at ¥81.19 from ¥81.26 after data showed Japan's big manufacturers at their most confident in a decade.

The local currency was at A91.96c from A91.94c, at 4.7877 yuan from 4.7984 yuan and at 53.81p from 53.91p.

The trade-weighted index was at 76 from 75.98 last week.

The two-year swap rate rose 1 basis point to 2.21 per cent and 10-year swaps rose four points to 3.29 per cent.