Thursday, March 28, 2024

Kiwi dollar weakens

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The New Zealand dollar was slightly weaker against the greenback but stuck in a tight range amid more Brexit turmoil and as markets await direction from the United States Federal Reserve later this week.
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The kiwi was trading at 68.49 US cents at 8am in Wellington from 68.61 US cents at 5pm. It was at 51.67 British pence from 51.62.
Markets were jittery after British Prime Minister Theresa May was told by the Speaker of the House of Commons any withdrawal agreement put before MPs must be substantially different from the existing deal.
“It now looks like the United Kingdom will not be voting on an exit deal ahead of the European Union meeting on Thursday,” ANZ Bank FX/rates strategist Sandeep Parekh said.
“May is expected to head to Brussels to ask EU leaders for a longer extension to the deadline though exactly how long will be requested is still unclear. This uncertainty won’t be welcomed by the markets.”
Looking ahead the key event is the US Federal Reserve’s latest monetary policy statement on Thursday morning NZ time. The market will be watching to see whether Fed chairman Jerome Powell reiterates the Fed will be patient about raising interest rates further.
Later the same morning local GDP data is expected to show the NZ economy expanded 0.6% in the fourth quarter, according to a Bloomberg survey of economists.
Today, investors will also be watching for the minutes from the latest Reserve Bank of Australia monetary policy meeting as well as consumer confidence both here and in Australia.
The kiwi traded at 96.48 Australian cents from 96.46. It was at 60.39 euro cents from 60.53, at 76.28 yen from 76.55 and at 4.5964 Chinese yuan from 4.606
The trade-weighted index was at 74.18 from 74.32. – BusinessDesk

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