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

NZ dollar makes gains against yen

NZ NewswireNZ Newswire 11/07/2016 Paul McBeth

The New Zealand dollar gained against the yen on expectations Prime Minister Shinzo Abe will provide more stimulus after his conservative party swept the upper house in the weekend election.

The kiwi climbed to 74.16 yen at 8am in Wellington from 73.67 yen on monday.

Still, the trade-weighted index fell from a 14-month high, trading at 77.25 from 77.68 as traders scaled back their bets on the local currency against other cross-rates.

The yen weakened against most major currencies after Mr Abe declared victory with his ruling conservative party winning a majority in the 121-seat upper house in Japan.

He signalled he will concentrate on the economy, and is expected to unveil a fiscal stimulus package reported to be more than 10 trillion yen.

"The big mover over the day has been the yen, following the decisive victory by the ruling conservative party in Japan's upper house elections," BNZ's Jason Wong said.

"The Nikkei 225 index shot up by 4 per cent, on hopes that further economic stimulus would come sooner than expected. PM Abe later announced that he would order preparation of an economic stimulus package today."

The kiwi fell against the greenback, trading at 72.19 US cents at 8am in Wellington from 72.78 cents as it retraced recent gains.

Mr Wong said the underperformance of the kiwi was consistent with his team's view that "the market over-reacted to the RBNZ speech on the housing market last week".

The kiwi fell to 95.82 Australian cents from 96.19 cents ahead of an Australian business confidence survey.

The local currency dropped to 4.8287 Chinese yuan from 4.8663 yuan, declined to 65.24 euro cents from 65.89 cents and fell to 55.56 British pence from 56.16 pence.

image beaconimage beaconimage beacon