9 Dec 2013

NZ dollar jumps against US currency

7:49 am on 9 December 2013

The New Zealand dollar has surged against the greenback after a strong US strong jobs report failed to fire up the American currency.

The strength of the data showing the US unemployment rate at 7% suggests the Federal Reserve is likely to start tapering its money printing programme sooner rather than later, a move which should push the US dollar higher.

However, on Friday the US dollar was weaker against the New Zealand dollar and mixed against other currencies, while Wall Street rallied.

Reports from the US suggest traders are waiting for a more definite signal of the central bank's intentions. Berkelely University professor Rob Reich, a former US labour secretary, says many analysts are cautious about the economic data because median wages are dropping and there is not the purchasing power the economy needs.

The Federal Reserve next meets on 17 and 18 December and tapering is one of the issues it is expected to discuss.

The kiwi closed in New York on Friday up about a cent at 82.81 US cents and jumped against the other major currencies.