Published: Sun, August 27, 2017
Money | By Oscar Reynolds

NZ dollar falls back toward 72 U.S. cts

NZ dollar falls back toward 72 U.S. cts

"Because of the reforms that strengthened our financial system, and with support from monetary and other policies, credit is available on good terms, and lending has advanced broadly in line with economic activity in recent years, contributing to today's strong economy".

US stocks got off to a strong start after President Donald Trump's chief economic adviser, Gary Cohn, said the White House would turn its attention to the long-awaited tax reform agenda from next week.

Markets were quiet as Thursday morning saw the beginning of the annual meeting of central bankers in Jackson Hole, Wyoming.

The greenback edged down to 0.7229 against the kiwi, off its previous high of 0.7197. Stocks in Southeast Asia were mixed.

The PSEi closed at 8,004.93, up 6.18 points or 0.07 percent while the broader All Shares gauge gained 3.36 points or 0.07 percent.

The dollar fell to a three-week low against the euro and a one-week trough versus the yen on Friday after Federal Reserve Chair Janet Yellen made no reference to USA monetary policy in her speech at the annual central bank research conference in Jackson Hole, Wyoming.

European Central Bank President Mario Draghi avoided giving any clues on the ECB's current thinking in a speech in Germany in which he said central banks must be open-minded on policy innovations as they prepare for future economic developments.

US POLITICS WATCH: In a speech late Tuesday, President Donald Trump said that "if we have to close down our government, we're building that wall" that he wants on the border between Mexico and the United States.

The local currency traded at 91.41 Australian cents from 91.62 cents and ANZ Bank said it could head toward 91 cents now it has definitively broken through 91.80.

"It is fair to say that Mr. Draghi is the 'headline act, '" said market analyst David Madden of CMC Markets in London.

OIL: Benchmark U.S. crude lost 2 cents to $47.67 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, the worldwide standard, slipped 35 cents to $51.53 per barrel in London. The Russell 2000 index of small-cap stocks fell 0.1 per cent to 1,369.74.

The US dollar traded around the value of 109.57 yen for most of the day leading up to Yellen's speech. That may allay some recent fears that the rise in the euro over the past few months was sapping exports by making eurozone products less competitive in global markets.

The euro got an early boost above the key $1.18 mark following the release of the German Ifo Business Climate index.

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