Sharechat Logo

NZ dollar touches month-high as Trump's first press conference offers little insight into stimulus

Thursday 12th January 2017

Text too small?

The New Zealand dollar hit a month-high as investors were disappointed US president-elect Donald Trump didn't provide much detail on his spending programme in his first press conference, prompting a sell-off in the greenback. 

The kiwi rose as high as 70.87 US cents, trading at 70.60 US cents as at 8am in Wellington from 69.97 cents yesterday. The trade-weighted index advanced to 77.88 from 77.45. 

The US dollar index, a measure of the greenback against a basket of currencies, fell 0.5 percent after Trump's hour-long press conference focused on reports of Russian interference in last year's US presidential election and an intelligence report that Russia holds compromising information about the president-elect. Investors were hoping for more details about Trump's planned spending on infrastructure and tax reform, which took a back seat in the briefing. 

"The USD index was trading a fairly steady path higher overnight, before a bout of volatility as the US president-elect gave a scheduled press conference early this morning," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "He covered many topics, but gave little detail on any fiscal stimulus plans. After his free-ranging comments the USD has fallen."

The kiwi rose to 57.70 British pence from 57.46 pence yesterday after Bank of England governor Mark Carney told policymakers the UK's exit from the European Union was no longer the biggest domestic threat to financial stability, and that the cost of not setting up a transitional deal would be higher for the continent than for the UK. The local currency increased to 66.58 euro cents from 66.30 cents yesterday.

The kiwi edged up to 81.25 yen from 81.12 yen yesterday and climbed to 4.8944 Chinese yuan from 4.8432 yuan. It was little changed at 94.74 Australian cents from 94.77 cents. 

BusinessDesk.co.nz



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.
Bookmark and Share   Printable version
Related News

NZ wool market improves at weekly auction
Spark chases quantum leap in 2019 earnings in latest transformation
Steel & Tube annual profit drops 22% in 'highly competitive' construction sector
CBL says 1H earnings dropped 36% due to increased reserves
UPDATE: Spark annual profit climbs 13% as sales tick up, chairman Verbiest signals exit
IkeGPS raises $3.7 million in placement, plans another $1.3 million raise
August 18th Morning Report
FIRST CUT: Spark annual profit climbs 13% as sales tick up, chairman Verbiest signals exit
NZ dollar dips as rumour of White House departure, Spanish terror attack sap risk appetite
While you were sleeping: Trump unsettles Wall St

IRG See IRG research reports