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NZ dollar heads for 0.7pc weekly gain

NZ Newswire logoNZ Newswire 5 days ago Rebecca Howard

<p>Pair charged with fraud over disappearing $1m</p> © Getty

Pair charged with fraud over disappearing $1m

The New Zealand dollar is heading for a 0.7 per cent weekly gain, having gone sideways in the local trading session as markets await US inflation data.

The kiwi traded at US71.40c as at 5pm versus US71.34c at 8am in Wellington, up from 71.04c Thursday. It traded at US70.92c in New York last Friday.

Martin Rudings, senior dealer foreign exchange at OMF in Wellington, said the greenback has been under pressure as markets are still jittery about US President Donald Trump, given ongoing geopolitical and economic risk.

"Generally the backdrop is a dark cloud over the US economy because of Trump," something that is likely to remain, he said.

The US dollar was also weighed on this week when minutes from the Federal Open Market Committee's September 19-20 meeting showed policy-makers held concerns about the strength of inflation in the world's biggest economy.

Against that backdrop, markets are now focused on US inflation data due Friday in the US for further clues about how aggressively the Fed will lift rates.

Domestically investors are waiting to see whether NZ First will back a National-led or Labour-led government.

NZ First leader Winston Peters confirmed that his party's board would meet with the party's nine-MP caucus on Monday to decide which of the two major parties to support to form a government. He expected to make an announcement after that meeting.

The kiwi rose to A91.09c from 90.86c Thursday and gained to 4.6952 Chinese yuan from 4.6794 yuan. It increased to 80.08 yen from 79.81 yen and advanced to 53.77 British pence from 53.59 pence. The local currency gained to 60.24 euro cents from 59.82c.

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