The New Zealand dollar gained in the US on Friday after reports that former Trump adviser Michael Flynn is prepared to testify against the US president about being asked to make contact with Russia in the run-up to last year's presidential elections.
The kiwi dollar traded at 68.66 US cents as at 8am in Wellington from 68.85 cents in late New York trading and up from 68.30 cents in Asia at the end of last week. The trade-weighted index was at 72.50 from 72.58 in New York and 72.12 in Wellington on Friday.
Former US national security adviser Michael Flynn pleaded guilty to lying to the FBI about his contact with the then Russian ambassador to the US Sergey Kislyak and ABC News reported that he was willing to testify that President Donald Trump directed him to make contact.
Trump has already issued a denial via Twitter while criticising the FBI.The greenback had gained earlier on Friday on optimism Senate Republicans have enough votes to push through tax cuts and Senate Republican leader Mitch McConnell said on Sunday he was "very optimistic" the tax legislation would be signed into law.
"Markets have generally shrugged off US political risks up until now, but that is perhaps getting a little harder to do," said Sharon Zollner, chief economist at ANZ Bank New Zealand, in a note.