Currency talk: Another big week for the kiwi dollar
BNZ's Jason Wong and NBR's Jason Walls break down the biggest currency news. With special audio.
The New Zealand dollar spent last week pushing above the 69c mark against the US dollar, as the greenback continued to weaken.
At one point, the kiwi broke 69.5USc after US Federal Reserve chairwoman Janet Yellen reinforced the position that US interest rate hikes will be slower than expected.
BNZ currency strategist Jason Wong says the Fed’s most recent meeting was more dovish than many had anticipated.
“This view was backed up last week by Mrs Yellen giving a speech reinforcing the view she was in no hurry to raise interest rates,” he says.
“I consider it appropriate for the committee to proceed cautiously in adjusting policy,” were Mrs Yellen's words which almost immediately resulted in the US dollar weakening and the kiwi strengthening.
Mr Wong says Mrs Yellen suggested that if things got worse for the US, the Fed might even consider a rate cut.
The Fed raised interest rates for the first time in almost 10 years in December.
The Australian dollar spent last week fluctuating between almost 90.5c and 89.5c against the kiwi.
But Mr Wong expects the kiwi to drop against the Aussie.
He says he expects the New Zealand dollar to fall to roughly 86c against the Aussie.
Follow NBR on Facebook, Twitter, LinkedIn and Instagram for the latest news and free on-demand audio from NBR Radio.
NBR Radio
Tue, 05 Apr 2016
Tue, 05 Apr 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Currency talk: Another big week for the kiwi dollar
57018