Kiwi heads for 1.7% weekly gain

Written By Unknown on Jumat, 09 Januari 2015 | 22.34

THE New Zealand dollar is heading for a 1.7 per cent weekly gain as the oil price slide seemed stemmed.

THE kiwi rose to 78.33 US cents at 5pm in Wellington from 77.02 cents on Friday in New York last week, and was up from 78.17 cents at 8am and 77.93 cents on Thursday.

The trade-weighted index is heading for a 0.8 per cent weekly gain to 79.98 from 79.35 last week, and up from 79.74 on Thursday.The US dollar index, which measures the greenback against a basket of currencies, has been holding near nine-year highs this week as falling oil prices keep a lid on already tepid global inflation and sapped demand for risk-sensitive assets.At the same time the euro has been under pressure on heightened speculation the European Central Bank will have to print money to fight deflation."Oil has been getting smashed and it's ready to rip - our feeling is the market's found a bit of a low and is due a bounce," said Mitchell McIntyre, corporate FX dealer at NZ Forex in Auckland."Everyone in the market's taking a bit of a breather, and the kiwi's just drifting a little bit higher."Traders are waiting on US non-farm payrolls figures on Friday in Washington to gauge the pace of recovery in the world's biggest economy, with the Federal Reserve looking likely to start unwinding its zero interest rate policy this year.The kiwi increased to 96.20 Australian cents at 5pm in Wellington from 96.04 cents on Thursday, to 4.8626 Chinese yuan from 4.8472 yuan, to 66.34 euro cents from 65.89 cents and to 93.61 yen from 93.26 yen.

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