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

Kiwi up vs greenback after French vote

NZN 24/04/2017 Rebecca Howard

The New Zealand dollar on Monday ticked up against the US dollar on global relief after French centrist politician Emmanuel Macron and the far-right Marine Le Pen made it through the first round of the presidential election.

The kiwi dollar, however, lost ground against the euro.

The kiwi rose to US70.33c at 5pm in Wellington from 70.19c on Friday in New York and dropped to 64.76 euro cents from 65.53 cents as markets were cheered by the result in France, with Macron widely tipped to win the final vote.

The election result saw the euro briefly touch US$1.0940, the highest since November, and Reuters reported opinion polls put Macron ahead by more than 20 points, a lead so large that a repeat of the Brexit surprise is seen as highly unlikely.

The US dollar, meanwhile, remained under pressure amid scepticism regarding US President Donald Trump's fiscal stimulus promises and "the weakening US dollar is pushing NZD/USD higher, targeting the 71.00 area this week. Also helping are rising dairy prices, higher inflation, and extremely short speculative NZD positioning," said Westpac senior FX strategist Imre Speizer in a note.

Trading was extremely quiet on Monday and "liquidity wasn't helped by the fact that we are between Sunday and Anzac Day (a national holiday in both New Zealand and Australian) so a lot of people aren't here today," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank

"If you weren't trading the euro against the US, sterling or the yen, you wouldn't have needed to come to work today," he said.

The kiwi traded at 54.94 British pence from 54.87 pence last week. It rose to 77.40 yen from 76.69 yen. It was trading at A93.04c from 93.20c on Friday. The kiwi increased to 4.8424 Chinese yuan from 4.8405 yuan last week.

image beaconimage beaconimage beacon