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NZ dollar gains ahead of Wheeler speech

NZ NewswireNZ Newswire 22/08/2016

The New Zealand dollar has risen ahead of a speech by Reserve Bank governor Graeme Wheeler which may hint at the timing of further easing, with at least one further cut expected this year.

The kiwi rose to US72.73 cents at 8am on Tuesday in Wellington from US72.16c late on Monday. The trade-weighted index rose to 77.03 from 76.64.

Mr Wheeler is scheduled to give a speech at 9am on Tuesday on the challenges of monetary policy in volatile times. He used an unscheduled economic update last month to signal the bank's intentions to the market before cutting the official cash rate a quarter point to 2 per cent earlier this month and saying further easing will be required and economic data would be closely watched.

"We continue to see the prospect of 25 basis point rate cuts at the November and February meetings, taking the OCR to a trough of 1.50 per cent," said Kymberly Martin, BNZ senior market strategist.

On Tuesday morning, the kiwi rose to 95.28 Australian cents from A95c late on Monday and rose to 4.8347 yuan from 4.8072 yuan. It rose to 64.21 euro cents from 63.96c, was little changed at 55.34 British pence and gained to 72.94 yen from 72.77 yen.

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