Dollar gains ahead of government's fiscal update
Half-Year Economic and Fiscal Update will help set the stage for an election-year budget.
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The dollar rose ahead of a speech by Reserve Bank Governor Graeme Wheeler and before the government's fiscal and economic update, which may paint a more upbeat picture of the outlook.
The kiwi dollar rose to 71.45USc at 8am in Wellington from 71.19USc late yesterday. The trade-weighted index climbed to 78.29 from 78.17.
Mr Wheeler's speech, titled Some thoughts on New Zealand's Economic Expansion, is to be published on the RBNZ website at 9am.
Mr Wheeler cut the official cash rate to a record low 1.75% on in November in what was seen as the last step of an easing cycle, with signs inflation will pick up this quarter.
Meanwhile, the government’s Half-Year Economic and Fiscal Update is released at 1pm and will help set the stage for an election-year budget next May, although Finance Minister Bill English is expected to have become prime minister by then, handing the Treasury portfolio to his successor.
"With the looming vote for a new PM, focus will probably be more on the finance minister's delivery than the rosy fiscal accounts," Bank of New Zealand currency strategist Jason Wong, says.
The kiwi dollar fell to 95.57A c from 95.71Ac late yesterday, having gained after figures showed the Australian economy shrank a greater than expected 0.5% in the third quarter.
The kiwi dollar rose to 56.62 British pence from 56.26 pence after figures showed British industrial production dropped 1.3% in October, against expectations of a gain.
The local currency traded at 66.48€c from 66.41€c yesterday, ahead of a European Central Bank meeting at which President Mario Draghi may extend the ECB's bond purchase programme while hinting at its eventual end.
The kiwi rose to 4.9178 yuan from 4.9051 yuan and rose to 81.43 yen from 81.24 yen.
(BusinessDesk)
Jonathan Underhill
Thu, 08 Dec 2016
Thu, 08 Dec 2016
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Dollar gains ahead of government's fiscal update
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