The New Zealand dollar gained as US President Donald Trump's latest policy decisions unsettled markets and weighed on the greenback.
The kiwi rose to 72.86 US cents as at 5 pm in Wellington from 72.65 cents late yesterday. The trade-weighted index rose to 79.64 from 79.46.
Markets were jittery in
Asia after acting US Attorney-General Sally Yates was removed from the role by the White House. According to Reuters, Yates said late on Monday that the Justice Department would not defend in court Trump's directive that put a 120-day hold on allowing refugees into the country, an indefinite ban on refugees from Syria and a 90-day bar on citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen. Hours later, she was fired.
"The US dollar is weaker because of President Trump's behaviour," said Imre Speizer, senior market strategist at Westpac Banking Corp. "It just adds to the concerns and risks therefore associated with US dollar-denominated assets."
The TWI is well above the average 76.4 level the Reserve Bank projected in its November monetary policy statement and its strength will be of concern to the bank, which is due to make an interest rate decision next week. Economists say the bank is probably done with cutting rates and its next move will be a hike.
