NZ dollar extends gain as uncertainty over Fed rate hikes weigh on greenback
By Paul McBeth
Oct. 15 (BusinessDesk) - The New Zealand dollar extended its gain as uncertainty over the timing and pace of US interest rate hikes continue to weigh on the greenback.
The kiwi rose to 68.22 US cents at 5pm in Wellington from 67.85 cents at 8am and 66.77 cents yesterday. The trade-weighted index advanced to 72.61 from 71.64 yesterday.
The US dollar index, a measure of the greenback against a basket of currencies, fell to a seven-week low after weaker than expected US retail sales and producer inflation data dimmed the prospects for the Federal Reserve to start raising interest rates. A slower start to monetary tightening in the US has whetted investors' appetite for currencies whose central banks are running interest rates above zero percent, and risk-sensitive assets such as the kiwi have found support over the past week-and-a-half as volatility in global markets eased.