close
MENU
1 mins to read

Dollar little changed as Fed September rate hike 'close call'

The greenback has been rallying on the expectation interest rates will have to be increased this year

Paul McBeth
Thu, 13 Oct 2016

The New Zealand dollar was little changed as minutes from the September meeting of the Federal Open Market Committee showed US policymakers saw a rate hike as being a "close call.”

The kiwi traded at 70.72USc at 8.30am in Wellington from 70.81UXc yesterday. The trade-weighted index was at 76.08 from 76.03 yesterday.

The US dollar index, a measure of the greenback against a basket of currencies, edged up 0.3% after minutes from the Federal Reserve's policy decision affirmed investors' expectations US interest rates will be raised in December, with policymakers saying a hike was needed "relatively soon."

The greenback has been rallying on the expectation rates will have to be increased this year as the world's biggest economy stays in good heart.

"Today's Fed minutes provided little new news, and are therefore unlikely to result in the market taking the chances of a November hike any more seriously, but they also provided nothing to stand in the way of the current market moves, ie increasingly pricing in a December hike but being a little nervous about it," ANZ Bank New Zealand senior economist Sharon Zöllner says.

"The NZD maintained its downward trend as the USD held on to gains against most comers. It isn't clear what would turn this around meaningfully any time soon."

Local data showed Auckland's property market came off the boil in September as house price inflation slowed and the volume of turnover declined.

Other data out today include September food prices, manufacturing activity, and the government's 2016 accounts.

The local currency rose to 57.82 British pence from 57.55 pence yesterday and edged up to 64.17euro cents from 64.06euro cents. It was little changed at 93.38Ac from 93.42Ac yesterday and fell to 4.7496 Chinese yuan from 4.7568 yuan. It gained to 73.68 yen from 73.24 yen yesterday.

(BusinessDesk)

Click the hamburger symbol top right of our homepage to access the Rich List 2016 and other sections.

 

Paul McBeth
Thu, 13 Oct 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Dollar little changed as Fed September rate hike 'close call'
62334