Monday, 04 December 2023
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDRIVEN Car GuideThe CountryPhoto SalesiHeart RadioRestaurant Hub
Voyager 2023 media awards
Subscribe

Advertisement

Advertise with NZME.
Home / Business

NZ dollar heads for 1.4 per cent weekly gain on Fed's cautious inflation view

BusinessDesk
By Rebecca Howard
24 Nov, 2017 04:10 AM2 mins to read
Saveshare

Share this article

facebookcopy linktwitterlinkedinredditemail
The New Zealand dollar is headed to a 1.4 per cent weekly gain. Photo / File

The New Zealand dollar is headed to a 1.4 per cent weekly gain. Photo / File

The New Zealand dollar is headed to a 1.4 per cent weekly gain after some market participants pared back their expectations for US interest rate increases next year after the Federal Reserve sounded a note of caution this week on low inflation.

The kiwi traded at 68.75 US cents as at 5pm in Wellington from 68.76 cents late yesterday and 67.79 cents a week ago. The trade-weighted index was at 72.49 from 72.53 late yesterday.

See live rates for the NZ-US $ below. Click for more information:

​

Advertisement

Advertise with NZME.

The kiwi benefited after minutes from the US Federal Reserve's latest meeting coupled with comments from Fed Chair Janet Yellen on persistently low inflation knocked the US dollar back this week. Trading, however, was extremely thin today ahead of Thursday's Thanksgiving Day holiday in the US, in particular as many people take Friday off as well.

"There is very little to work off. We have seen tight ranges, as you would expect with these holiday-thinned markets. The kiwi has moved in a 15-point range all day. It is very, very quiet," said Mark Johnson, a senior dealer at OMF.

While he said the kiwi is looking reasonably resilient and "the selling pressure we have seen for an extended period has probably been exhausted," he also said it remains a sell on rallies as there is little reason for it to sustain a break higher.

Also, the weakness in the US dollar may not have much "longevity," in particular as the December rate hike remains fully priced in and Yellen's comments may be discounted to some degree as she is due to stand down with the appointment of her successor, he said.

Advertisement

Advertise with NZME.

"The important thing will be to see how the dot plots will work out for next year," he said referring to the US Federal Reserve's fan chart showing the range of possible outcomes for interest rates.

The kiwi traded at 58.03 euro cents from 58.16 cents yesterday and at 90.22 Australian cents from 90.29 cents yesterday. It was at 51.72 British pence from 51.57 pence, 4.5299 yuan from 4.5328 yuan and traded at 76.62 yen from 76.53 yen.

New Zealand's two-year swap rate lifted 1 basis point to 2.15 while the 10-year swap rate lifted 1 basis point to 3.09 per cent.

Saveshare

Share this article

facebookcopy linktwitterlinkedinredditemail

Advertisement

Advertise with NZME.

Latest from Business

Business

Tower's ownership is up for review

03 Dec 09:18 PM
Premium
Business

Financier debt on failed Dawn Park apartment project declared at $53.4m

03 Dec 09:00 PM
Premium
Business

Are workplace romances a savvy investment?

03 Dec 08:05 PM
New Zealand

Deer industry in limbo after China changes import rules

03 Dec 07:47 PM

Navigating the ‘decade of uncertainty’

sponsored

Advertisement

Advertise with NZME.

Latest from Business

Tower's ownership is up for review

Tower's ownership is up for review

03 Dec 09:18 PM

Michael Stiassny says 'thorough examination of ownership' is prudent.

Premium
Financier debt on failed Dawn Park apartment project declared at $53.4m

Financier debt on failed Dawn Park apartment project declared at $53.4m

03 Dec 09:00 PM
Premium
Are workplace romances a savvy investment?

Are workplace romances a savvy investment?

03 Dec 08:05 PM
Deer industry in limbo after China changes import rules

Deer industry in limbo after China changes import rules

03 Dec 07:47 PM
How to make a win-win-win from waste
sponsored

How to make a win-win-win from waste

About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2023 NZME Publishing Limited
TOP