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Kiwi gains 0.5pc against greenback on week

NZ Newswire logoNZ Newswire 24/02/2017 Rebecca Howard

© Bloomberg The New Zealand dollar is heading into the end of the week up 0.5 per cent against the US dollar, as the greenback struggled to gain any traction on ongoing jitters about the US, but stuck to a tight range on the day on Friday.

The kiwi was at US72.18c as at 5pm in Wellington versus US72.27c as at 8am on Friday and 72.01c late Thursday. It started the week at 71.84.

The local currency benefited from a weaker US dollar this week after the market saw the latest minutes from the Federal Reserve as more dovish than anticipated.

It got a further boost overnight after new US Treasury Secretary Steven Mnuchin indicated it would take time for fiscal policy reform to impact the US economy.

On the day, however, trading has been tepid. "The lack of data and any other influences mean it has ebbed and flowed" around resistance at US72.30c, said Stuart Ive, senior foreign exchange dealer at OMF.

"Until we really know what's going on in the US these markets are somewhat subdued and nervous, partly because of the amount of time we are having to wait to see what the plans actually are," said Mr Ive.

The kiwi continued to fare well against the Australian dollar, in particular after some weak data on Friday across the Tasman. It traded at A93.55c from 93.65c Thursday and from 93.53c early Monday.

Looking ahead, he said next week's Australian gross domestic product figures and manufacturing data out of China may cause some reaction. "If both of those pieces of data come out solid and to the upside we may see the Australian dollar coming back and the kiwi struggle," he said.

The NZ dollar slipped to 57.51 British pence from 57.82 pence and was at 68.19 euro cents from 68.14 cents. The kiwi was at 81.39 yen from 81.55 yen and rose to 4.9586 yuan from 4.9531 yuan.

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