Kiwi dollar gains on yen as risk appetite grows

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NZN

The New Zealand dollar has risen against the yen as investors regained some risk appetite, reducing demand for Japan's currency as a safe haven.

New New Zealand 10 dollar and 5 dollar notes and coins.

New Zealand currency (file picture).

Source: istock.com

The kiwi traded 79.30 yen as at 8am today in Wellington from 78.56 yen late yesterday. It was little changed at US72.46 cents from US72.45c.

The UN votes today on a new round of sanctions against North Korea in retaliation for its latest nuclear test and missile launches but the US has reportedly watered down its draft resolution and there is relief that the isolated nation didn't conduct another nuclear test to coincide with its 69th anniversary over the weekend.

Meanwhile, Hurricane Irma weakened to a tropical storm and didn't make a direct hit on Miami, reducing the level of damage that could dent US economic growth.

The Chicago Board Options Exchange Volatility Index, or VIX, fell to its lowest level in more than a week.

"Risk sentiment has bounced higher, leading to a shift out of safe-havens, while the USD has shown signs of recovery," said BNZ currency strategist Jason Wong.

Today, the kiwi rose to 60.62 euro cents from 60.29c late yesterday after European Central Bank officials including board director Benoit Coeure flagged a gradual reduction in monetary stimulus from the bank.

The kiwi rose to 4.7303 yuan from 4.7121 yuan, gained to 90.27 Australian cents from A89.97c and traded at 55.04 British pence from 54.98p.

The trade-weighted index increased to 75.38 from 75.17.

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