NZ dollar gains as geopolitical risks swirl, Yellen gives upbeat economic view
Yellen, who is currently giving an address at the University of Michigan, said the US economy is "healthy."
The New Zealand dollar rose amid concern geopolitical risks are on the rise after the US diverted a US carrier fleet to the Korean peninsula, while Federal Reserve chair Janet Yellen gave an upbeat view of American and global economic growth.
The kiwi gained to 69.55 US cents as at 8:30am in Wellington from 69.36 cents late yesterday. The trade-weighted index rose to 76 from 75.84.
US Secretary of State Rex Tillerson is due in Moscow this week for talks that come on the heels of the US missile strike on the Syrian regime which counts Russia as its biggest supporter. Meanwhile, US President Donald Trump has said America may act alone to bring North Korea to heel if China doesn't step up, while there have also been reports of Chinese troops near the Korean border. Yellen, who is currently giving an address at the University of Michigan, said the US economy is "healthy" and the Fed is close to reaching its policy objectives, but she also repeated the words that rate hikes will be gradual.
"With few data releases, geopolitical risks have taken centre-stage," said Jason Wong, currency strategist at Bank of New Zealand, in a note. The market will be watching Yellen's speech "following the US employment report, which saw the unemployment rate fall to its lowest level in 10 years, and comments on the likely shrinkage of the Fed's balance sheet from late this year."
The kiwi slipped to 77.16 yen from 77.30 yen late yesterday and gained to 92.75 Australian cents from 92.62 cents. It traded at 65.64 euro cents from 65.52 cents and was little changed at 56.05 British pence from 56 pence. The kiwi increased to 4.8002 yuan from 4.7885 yuan.
(BusinessDesk)
Jonathan Underhill
Tue, 11 Apr 2017
Tue, 11 Apr 2017
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NZ dollar gains as geopolitical risks swirl, Yellen gives upbeat economic view
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