US dollar holds onto payrolls gains, NZ dollar rises after election

The US dollar held on to most of Friday’s gains after stronger-than-expected US jobs data lifted expectations of a Federal Reserve rate rise in December. The move matters because higher expected US interest rates can support the dollar against other currencies, even as concern about technology shares had recently weakened rate-rise bets.

The dollar index was steady at 102.20, after rising about 0.7 per cent on Friday; markets put the chance of a December rate rise at 79 per cent, up from 71 per cent a week earlier. The New Zealand dollar rose 0.4 per cent to US$0.5557 after a close election left the governing coalition with a preliminary 67 seats in a 131-seat parliament, just above the 66 needed for a majority. Nearly 15 per cent of votes remain uncounted, with official results due on 27 November.