The New Zealand dollar dropped slightly against the world's reserve currency on Friday in advance of the U.S. Labor Department's release of jobs data, The Wall Street Journal reports.
The labor market data in the globe's largest economy is likely to influence decisions of the U.S. Federal Reserve regarding monetary stimulus measures. On two occasions during the past two months, the Fed has opted to taper policy by $10 billion.
"The only obvious explanation is the improvement in risk appetite last night," senior market strategist Imre Speizer with Westpac Bank in New Zealand told The New Zealand Herald on Friday. "There was no fresh catalyst for that improvement, it is simply that emerging markets remain stable and that is benefiting the risky currencies like the Aussie and the kiwi."
The kiwi edged up from its Wednesday close against the dollar after New Zealand observed a public holiday on Thursday, according to The Wall Street Journal.
The kiwi climbed early Friday morning against the greenback as the Reserve Bank of Australia was set to release the Statement on Monetary Policy later in the trade session, The New Zealand Herald reports.
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