Dollar slips from week high as Fed officials tip rate hike this year
Kiwi fell to 63.61USc at 8:30am in Wellington.
The New Zealand dollar fell from its highest level in a week after two Federal Reserve officials followed chairwoman Janet Yellen in expressing their preference for the start of interest rate hikes this year.
The kiwi fell to 63.61USc at 8:30am in Wellington from 63.8USc in late New York trading on Friday. The trade-weighted index rose to 69.47 from 69.13.
US Federal Reserve chairwoman Janet Yellen said on Friday that she favoured a rate hike this year in a slow return to normality, and was followed by St Louis Fed president James Bullard and Kansas City Fed president Esther George making similar comments over the weekend. The kiwi held up against broad US dollar strength on Friday. An upward revision to US economic growth figures and the announcement by US Congress speaker John Boehner that he would resign next month, possibly averting a budget stalemate, also helped US dollar sentiment.
"With a further nine Fed speakers scheduled for this week [including Mrs Yellen again] and the all important non-farm payrolls report also due later in the week, Fed policy – and its impact on broader markets – will no doubt remain at the forefront of the markets' mind," ANZ Bank New Zealand's Philip Borkin and Sam Tuck wrote in a report.
They see the kiwi trading in a range of 63.40USc to 64.40USc in what's expected to be "a quiet start to the normally volatile week" of US non-farm payrolls, with little domestic data apart from the ANZ Business Outlook on Wednesday and ANZ Commodity Price Index on Friday.
The kiwi slipped to 90.47Ac from 90.84Ac in New York on Friday and traded at ¥76.65 from ¥76.96. The local dollar fell to 4.0524 yuan from 4.0690 yuan on Friday and declined to 56.79 euro cents from 57.03 cents. It fell to 41.83 British pence from 42.05p.
(BusinessDesk)
Jonathan Underhill
Mon, 28 Sep 2015
Mon, 28 Sep 2015
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Dollar slips from week high as Fed officials tip rate hike this year
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