Kiwi dollar falls after 3 week high

  • 21/09/2015

The New Zealand dollar fell from a three-week high reached in New York trading after US Federal Reserve officials said they expected to raise interest rates this year.

The kiwi traded at 63.95 US cents as at 8am, having reached as high as 64.55 cents in New York, from 63.93 cents at the close of trading last week. The trade-weighted index was little changed at 68.91 from 69.03.

John Williams, president of the Federal Reserve Bank of San Francisco told media that the decision not to raise interest rates last week was "a close call" and he expected the Fed to gradually start raising rates most likely this year.

Two other Fed presidents both indicated their support for raising rates.

The US dollar rebounded on Friday in what some traders called a technical rally after disappointment at a dovish Fed statement last week that cited global uncertainty, seen partly as a reference to China. Stocks ended the week lower on Wall Street.

"The kiwi tried to rally again on Friday night," ANZ Bank said.

Data out on Monday includes migration figures, which should show continued strong inbound migrants, while Westpac is scheduled to release its consumer confidence survey for the third quarter.

The kiwi traded at 76.81 yen from 76.77 yen on Friday, fell to 55.67 euro cents from 56.68 cents, slipped to 41.16 British pence from 41.20 pence, held steady at 88.90 Australian cents from 88.93 cents, and dropped to 4.0639 Chinese yuan from 4.0703 yuan.