The New Zealand dollar is headed for a weekly decline of 2 per cent against a resurgent greenback and gained versus the Aussie after a court ruling disqualifying an MP with dual citizenship from office in the Australian Government.
The kiwi was trading at US68.40c at 5pm today versus US68.36c as at 8:30am and US68.88c late on Thursday. It traded at US69.68c last Friday in New York. It was at A89.58c from A89.33c late on Thursday.
Australia's constitution prohibits dual citizens from standing for office. Four other politicians were also invalidly elected last July, according to the ruling. Deputy Prime Minister Barnaby Joyce's invalid election means the Government no longer has a one-seat majority. "It's been negative for the Australian dollar," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank.
Joyce, however, has renounced his Kiwi citizenship and could run again in a byelection.
Outside of the Australian news the kiwi had been heavy all day long, it had not bounced at all, said Kelleher. "If we can't hold US68c, it looks pretty ugly," he said.