You are using an older browser version. Please use a supported version for the best MSN experience.

Kiwi continues to fall against yen

NZ Newswire logoNZ Newswire 12/04/2017 Rebecca Howard

The New Zealand dollar has fallen to a new five-month low against the yen as heightened tensions around North Korea sapped investors' risk appetite and stoked demand for safe-haven assets.

The kiwi dollar slipped to 75.93 Japanese yen as at 8.30am on Thursday in Wellington and earlier touched 75.64 yen, the lowest since November 14, versus 76.04 yen late Wednesday. The trade-weighted index was little changed at 75.80 from 75.77.

Tensions with North Korea remain high, with a US Navy strike group steaming toward the western Pacific in a show of force and North Korea warning of a nuclear attack on the US at any sign of American aggression.

The Chicago Board Options Exchange Volatility Index, known as Wall Street's fear gauge, reached 15.73 overnight, the highest since early November.

"US equities continued to sell off with the VIX rising (it has risen more than 20 per cent in four days)," said ANZ chief economist Cameron Bagrie.

While a phone call between US President Donald Trump and Chinese President Xi Jinping helped temper some geopolitical risks being priced into the market, elevated equity valuations heading into earning season amidst rising geopolitical tension meant uncertainty was high, he said.

Meanwhile, Russian President Vladimir Putin said on Wednesday trust had eroded between the US and Russia under Mr Trump as Moscow delivered an unusually hostile reception to Secretary of State Rex Tillerson in a face-off over Syria.

The kiwi did inch higher against the US dollar and was trading at US69.56 cents on Thursday moring versus US69.45c late Wednesday.

However, the kiwi fell to 55.47 British pence from 55.62. It declined to 62.25 euro cents from 65.47c but inched higher to 4.7913 Chinese yuan from 4.7893 Chinese yuan.

It was also weaker against the Australian dollar, trading at A92.52 cents from A92.66c.

image beaconimage beaconimage beacon