NZ dollar heads for weekly gain

share

Source:

NZN

The New Zealand dollar is heading for a 1.2 per cent weekly gain, pushing higher against a slumping greenback.

New Zealand currency fifty dollar note money

New Zealand currency fifty, dollar note (file picture).

Source: istock.com

This came after minutes from the European Central Bank's December meeting boosted investor expectations it is planning to end its massive stimulus programme.

The kiwi traded at US72.54c as at 5pm from US72.48c at 8am and up from 71.88c Thursday. It was at 71.67 US cents last Friday in New York.

The ECB minutes showed officials considered a move "early in the coming year" to further reduce stimulus, assuming economic growth remains strong, which weighed on the US dollar overnight and during Asian trading.

The minutes came on the heels of the Bank of Japan trimming its bond-buying scheme this week, which also weighed on the greenback.

The kiwi has benefited from the weaker dollar and from the more upbeat sentiment around global growth, said Martin Rudings, senior dealer foreign exchange at OMF in Wellington.

He noted trading is cautious ahead of the US consumer price index data later in the global trading day.

"The market is a bit nervous to push it on too much further ahead of CPI in the States," he said.

Mr Rudings said coalition talks in Germany are also on investors' radar. According to Reuters, negotiators vowed to reach a decision by today in Europe.

If the talks broke down, the uncertainty around the need for a new election would weigh on the euro and the kiwi while the greenback would benefit.

The local currency was little changed at 60.18 euro cents from 60.14c Thursday.

The kiwi gained to 4.7010 Chinese yuan from 4.6838 yuan yesterday after the Chinese government quashed speculation it was considering cutting its purchases of US Treasuries.

The kiwi rose to A92.03c from 91.37c and advanced to 53.53 British pence from 53.22 pence. It gained to 80.69 yen from 80.29 yen.

loading error

refresh