NZ dollar below 72 US cents as US bond spike erodes carry trade appeal

NZ dollar below 72 US cents as US bond spike erodes carry trade appeal
Jonathan Underhill
By Jonathan Underhill Nov. 11 (BusinessDesk) - The New Zealand dollar fell as a selloff in US bonds, on what's expected to be more stimulatory US government policy under Donald Trump, eroded the yield premium on kiwi assets and demand for the carry trade. The kiwi fell to 71.99 US cents from 72.66 cents late yesterday. The trade-weighted index dropped to 77.96 from 78.21. In the carry trade, investors borrow in a currency that offers low interest rates to buy a currency that has higher interest rates.The yield on 5-year US Treasuries h...