Sharechat Logo

NZ Dollar makes further gains overnight on continued Trump disappointment

Friday 13th January 2017

Text too small?

The New Zealand dollar made further gains overnight benefiting from a weaker US dollar as markets remained disappointed with the lack of detail from US president-elect Donald Trump’s press conference. 

The kiwi rose as high as 71.43 US cents and was trading at 71.19 US cents at 8 am in Wellington from 70.77 cents yesterday. The trade-weighted index advanced to 78.25 from 77.90.

“This is the unwind of the Trump trade as the market was clearly very disappointed in Trump’s inability to enlighten markets about his economic policy and it raised questions about how things are going to pan out when he gets in office,” said Stuart Ive, senior dealer foreign exchange at OMF in Wellington in a note. 

The US dollar had gained strongly since Trump was victorious in the November election, heightening expectations the Federal Reserve will raise interest rates more aggressively throughout 2017.

Ive said if the Kiwi manages to hold its current level through the New York close there is potential for further gains in the value of the local currency. However, a raft of data is due from the United States including retail sales, as well as a speech by US Federal Reserve Chair Janet Yellen, with Ive noting these had the potential to move the market around. 

The kiwi rose to 58.58 British pence from 57.94 pence late Thursday. The local currency increased to 66.99 euro cents from 66.70 cents yesterday.

The kiwi edged up to 81.52 yen from 80.99 yen yesterday and climbed to 4.9043 Chinese yuan from 4.8896 yuan. It was slightly higher at 94.91 Australian cents from 94.79 cents.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares up, led by Fisher & Paykel Healthcare, Ryman
NZ dollar heads for 0.1% weekly fall with jittery markets over weaker yuan
Xero quits developing in-house US payroll product, signs up with Gusto
Farming, horticultural groups seek flexibility in zero emissions plans
Hawaiki Submarine Cable begins commercial operations
Net migration falls in June, remains historically high, Stats NZ says
Commerce Commission files proceedings against Wilson Parking, seeks penalty
SeaDragon's funding transaction unfair but positives outweigh negatives, say independent advisers
Morningstar cuts earnings forecast for Z Energy but maintains hold rating
July 20th Morning Report

IRG See IRG research reports