Kiwi dollar sole riser on USD strength

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NZN

The New Zealand dollar has risen ahead of the Reserve Bank's interest rate review while many other currencies fell against the greenback on the prospects for US rate hikes and President Donald Trump's plan to slash taxes.

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

New Zealand currency (file picture).

Source: istock.com

The kiwi dollar gained to US72.17 cents as at 8am today in Wellington from US72.09c late yesterday. The trade-weighted index rose to 76.11 from 75.85.

Market bets on a Federal Reserve rate hike in December have increased to 72 per cent, helped by what were taken as hawkish comments by chairwoman Janet Yellen, who warned this week of the dangers of "persistently easy monetary policy".

Meanwhile, Trump unveiled plans to overhaul US taxes, slashing the corporate rate to 20 per cent from 35 per cent and reducing the top tax rate to 35 per cent from 39.6 per cent, although he didn't set out how this would be achieved without driving up the US federal deficit.

In New Zealand, acting Reserve Bank governor Grant Spencer kept the official cash rate unchanged at 1.75 per cent today.

"USD strength was a feature overnight against all and sundry excluding the NZD," said ANZ chief economist Cameron Bagrie.

The US dollar was also helped by figures showing durable goods orders rose a greater-than-expected 1.7 per cent in August.

Today, the kiwi rose to 61.42 euro cents from 61.14c late yesterday and gained to 53.86 British pence from 53.63p. It rose to 81.39 yen from 80.99 yen, advanced to 91.81 Australian cents from A91.52c and gained to 4.7928 yuan from 4.7814 yuan.

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