NZ dollar gains vs yen as demand for safe havens abates

NZ dollar gains vs yen as demand for safe havens abates, rises vs euro
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By Jonathan Underhill

Sept. 12 (BusinessDesk) - The New Zealand dollar rose against the yen as investors regained some risk appetite, reducing demand for Japan's currency as a safe haven.

The kiwi traded 79.30 yen as at 8am in Wellington from 78.56 yen late yesterday. It was little changed at 72.46 US cents from 72.45 cents yesterday.

The UN votes this morning on a new round of sanctions against North Korea in retaliation for its latest nuclear test and missile launches but the US has reportedly watered down its draft resolution and there is relief that the isolated nation didn't conduct another nuclear test to coincide with its 69th anniversary over the weekend. Meanwhile, Hurricane Irma weakened to a tropical storm and didn't make a direct hit on Miami, reducing the level of damage that could dent US economic growth. The Chicago Board Options Exchange Volatility Index, or VIX, fell to its lowest level in more than a week.

"Risk sentiment has bounced higher, leading to a shift out of safe-havens, while the USD has shown signs of recovery," said Jason Wong, currency strategist at Bank of New Zealand.

The kiwi dollar rose to 60.62 euro cents from 60.29 cents late yesterday after European Central Bank officials including board director Benoit Coeure flagged a gradual reduction in monetary stimulus from the bank.

The trade-weighted index increased to 75.38 from 75.17.

The kiwi rose to 4.7303 yuan from 4.7121 yuan yesterday. It gained to 90.27 Australian cents from 89.97 cents and traded at 55.04 British pence from 54.98 pence.

(BusinessDesk)

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