The New Zealand dollar fell against the euro as early projections showed pro-EU centrist Emmanuel Macron had won a decisive victory in the French presidential election today.
Source: 1 NEWS
The kiwi dropped to 62.64 euro cents as at 8am in Wellington from 62.96 cents in late New York trading on Friday.
The kiwi fell to US69.04c from US69.16c.
Projections from French polling stations put Macron's lead over National Front candidate Marine Le Pen at 65 per cent to 35 per cent, a wider lead than had been predicted ahead of the poll, Reuters reported.
Le Pen had threatened to take France out of the EU in a continuation of the populist nationalism that saw Britain's Brexit vote and the election of US President Donald Trump.
Macron's win "sets the scene for positive risk sentiment as the new week begins", Bank of New Zealand currency strategist Jason Wong said in a note.
"Traders were reluctant to go into the weekend with long positions in case of a shock Le Pen victory."
While the kiwi fell against the US dollar, the greenback was broadly weaker following the release of non-farm payrolls for April, which showed only modest wage inflation as US employers added 211,000 jobs in April, more than economists expected, but coming after a downwardly revised 79,000 gain in March.
The jobless rate fell to 4.4 per cent, the lowest in almost a decade.
Wage inflation was unchanged on the month at 0.3 per cent, based on average hourly earnings, for a year-on-year 2.5 per cent.
The market is now pricing in a 76 per cent chance the Federal Reserve hikes interest rates next month, Mr Wong said.
By contrast, no change is expected from the Reserve Bank of New Zealand when it releases its monetary policy statement on Thursday, keeping the official cash rate at 1.75 per cent.
The trade-weighted index decreased to 75.12 from 75.27 in New York on Friday.
The kiwi traded at A93.10c from A93.25c at the end of last week.
It fell to 53.19 British pence from 53.31 pence, declined to 4.7624 yuan from 4.7728 yuan and traded at 77.93 yen from 77.97 yen.