Dollar rises in volatile trading after US labour data
Kiwi rose as high as 66.36USc.
The New Zealand dollar gained in volatile trading over the weekend as investors weighed the likelihood of an interest rate hike in the US next month following labour market data on Friday.
The kiwi rose as high as 66.36USc, and was trading at 66.0USc at 8am in Wellington from 66.16USc at the New York close and 65.5USc on Friday. The trade-weighted index jumped to 70.41 from 69.99 on Friday.
The US dollar index, which measures the greenback against a basket of currencies, declined after touching its highest level in almost four months as investors considered whether the US Federal Reserve will raise interest rates next month following solid jobs data that just undershot expectations. The labour report, released Friday in the US, showed the world's largest economy added 215,000 jobs in July, just missing expectations for a 225,000 gain.
"It was a highly volatile night for most currencies in the wake of the US payrolls report," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "Overall, the report was solid, while providing sufficient ambiguity to leave the September Fed rate hike debate alive and well. The initial response from the US dollar was to spike higher. However, the move did not last. Within a couple of hours the US dollar was back down. The violent moves tossed the US dollar's peers around."
New Zealand dollar strength was underpinned by Fonterra Cooperative Group's announcement on Friday that the dairy exporter would soften the blow of a lower milk payout for farmers this season through an interest-free loan to farmers, Martin said.
The New Zealand dollar advanced to 89.09Ac from 89.01Ac on Friday, rose to 42.61 British pence from 42.24p, increased to 60.18 euro cents from 60.01 pence and gained to ¥81.98 from ¥81.79.
Today, traders will be eyeing a consumer confidence report in Japan.
(BusinessDesk)
Tina Morrison
Mon, 10 Aug 2015
Mon, 10 Aug 2015
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Dollar rises in volatile trading after US labour data
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