Dollar edges up as investors shed greenback on interest rate uncertainty
Kiwi advanced to 69.32 US cents at 8am in Wellington.
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The New Zealand dollar edged up as investors reduced their holdings of US dollars amid uncertainty about the pace of future interest rate rises in the world's largest economy.
The kiwi advanced to 69.32 US cents at 8am in Wellington, from 68.94 cents at 5pm yesterday. The trade-weighted index gained to 71.96 from 71.77 yesterday.
The US dollar index, which measures the greenback against a basket of currencies, touched a month-low overnight as weaker-than-expected US inflation data added to uncertainty about when the Federal Reserve is likely to start hiking interest rates. The US dollar has fallen out of favour after the Federal Open Market Committee this week pulled back its economic growth forecasts and trimmed its expectations for future interest rate increases.
"Investors continued to sell the US dollar after the FOMC rate decision," Kathy Lien, managing director of FX strategy at BK Asset Management in New York, said in a note. "Investors hoped that (Fed chair Janet) Yellen would be more hawkish."
Still, BK's Lien said the US dollar remains attractive with the Fed likely to raise rates at least once this year.
In New Zealand today, the focus will be on the ANZ-Roy Morgan monthly consumer confidence survey, scheduled for release at 1pm.
Investors will also be keeping a close eye on Greek debt negotiations. The local currency advanced to 60.92 euro cents from 60.67 cents yesterday.
The New Zealand dollar edged up to 43.62 British pence from 43.54 pence, and slipped to 88.84 Australian cents from 89.23 cents. It gained to 85.19 yen from 84.86 yen yesterday ahead of the Bank of Japan policy review today.
(BusinessDesk)
Tina Morrison
Fri, 19 Jun 2015
Fri, 19 Jun 2015
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Dollar edges up as investors shed greenback on interest rate uncertainty
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