NZ dollar gains regardless of election countdown

The Kiwi dollar traded at US73.12c at 5pm.

The New Zealand dollar gained as investors became more sanguine about the outcome of Saturday's election, regardless of who wins and as risk appetite improved in Asia.

The Kiwi dollar traded at US73.12c at 5pm from US72.80c at the start of the day and US72.88c in New York on Friday.

The trade-weighted index was at 76.08 from 75.91 on Friday.

Investors had sold down the kiwi on pre-election jitters after the polls showed a very close race. Some of those nerves, however, look to have abated after the Labour Party said it would implement no tax reforms recommended by a working group before the 2020 election.

Markets will be keeping a close watch on the UN General Assembly this week in particular, as US President Donald Trump is slated to address the body for the first time.

Trump is expected to seek support for tough measures against North Korea. The US Federal Reserve's policy meeting this week will also remain firmly in focus.

The New Zealand dollar was trading at 53.8p from 53.65p on Friday in New York and at A91.10c from A91.07c. It traded at 61.23c versus 61c and at 81.27 from 80.79.

It was at 4.7872 yuan from 4.7736 yuan. The two-year swap rate rose 3 basis points to 2.22 per cent while 10-year swaps rose 6 basis points to 3.23 per cent.