NZ dollar little changed as Trump weighs on greenback
The New Zealand dollar was little changed above 72USc, near its highest in more than a month.
The New Zealand dollar was little changed above 72USc, near its highest in more than a month, after US President Donald Trump expounded plans for protectionist policies including renegotiation of trade agreements and a border tax.
The kiwi traded at 72.12USc as at 8am in Wellington from 72.02USc late yesterday. The trade-weighted index edged up to 78.77 from 78.65.
The US dollar index, which measures the greenback against a basket of currencies, fell to its lowest since December 9, and stocks fell in the US and Europe after Mr Trump formally ordered the US to withdraw from the Trans-Pacific Partnership trade deal and Bloomberg News reported he was also preparing to renegotiate the North American Free Trade Agreement. He has already declared 'war' on the media after reports that crowds for his inauguration were smaller than for Barack Obama, and reiterated plans to cut corporate taxes and regulations.
"As week one in office gets under way there is a growing sense of scepticism, not helped by the tone of Friday's inaugural address and subsequent spat with the media," said Con Williams, rural economist at ANZ Bank New Zealand, in a note. "Within developed markets, there was a mild bias for safe haven FX as the US dollar remained defensive."
The yen, regarded as a safe-haven currency, strengthened to a week-high against the US dollar. The kiwi fell to ¥81.52 from ¥81.83.
There is little local data scheduled for this week, although traders will be watching the performance of services index for December, due today, and the consumers price index for the fourth quarter, due on Thursday and expected to show annual inflation has returned to the Reserve Bank's target band.
The kiwi increased to 95.36Ac from 95.13Ac and advanced to 4.9460 yuan from 4.9318 yuan. It edged up to 67.18 euro cents from 67.04 cents and fell to 57.77 British pence from 57.97 pence.
(BusinessDesk)
Jonathan Underhill
Tue, 24 Jan 2017
Tue, 24 Jan 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
NZ dollar little changed as Trump weighs on greenback
64366