Sharechat Logo

NZ dollar slips in subdued trading after Trump's tweets on Korea

Wednesday 3rd January 2018

Text too small?

The New Zealand dollar eased slightly in Asian trading in holiday-thin markets after US President Donald Trump tweeted threats to North Korea.

The kiwi traded at 70.83 US cents as at 5pm in Wellington versus 71.03 cents late yesterday. The kiwi has gained in recent sessions as the prices of raw materials have lifted commodity-linked currencies. The trade-weighted index was at 73.72 from  73.88 yesterday.

Mike Shirley, senior FX dealer for Kiwibank said the New Zealand dollar may have "waned slightly on risk aversion/flight to safety following Trump’s twitter comments regarding North Korea." He noted there was a similar theme in the Japanese yen, which strengthened against the US dollar as a safe-haven play. The "magnitude of the moves, however, was far less than we’ve seen in the past – in part because the market has simply become accustomed to these exchanges," he said.

Among other things, Trump tweeted "North Korean Leader Kim Jong Un just stated that the “Nuclear Button is on his desk at all times.” Will someone from his depleted and food starved regime please inform him that I too have a Nuclear Button, but it is a much bigger & more powerful one than his, and my Button works!" 

Shirley noted, however, that all moves are very marginal as many people are still on holiday.  He said the US dollar may also have benefited as the new trading year gets underway and investors retake positions they may have unwound at the end of last year. 

Looking ahead, he said the main event this week will be the US nonfarm payrolls overnight Friday. Tomorrow nights' ADP survey may also garner some attention ahead of that release. 

The kiwi dollar fell to 52.09  British pence from 52.60 pence yesterday. It traded at 90.63 Australian cents from 91 cents yesterday and declined to 58.78 euro cents from 59.14 cents. It fell to 79.57 yen from 80.02 yen and dropped to 4.6071 yuan from 4.6221 yuan.

New Zealand’s two-year swap rate was unchanged at 2.19 percent while the 10-year swap rate rose 3 basis points to 3.16 percent. 

(BusinessDesk)

  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:

Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report
NZ dollar higher as greenback falters on trade jitters, weak US data

IRG See IRG research reports