Lates News

The New Zealand dollar gave back earlier gains during European morning trade on Thursday, turning lower against the US dollar as market sentiment weakened. Escalating tensions in the Middle East pushed oil prices higher, which in turn drove up US Treasury yields and also limited the extent of the dollar's pullback after its weakness during the Asian session. Yemen's Houthi rebels once again attacked a Saudi airport, pushing oil prices higher. With the possibility of further attacks on Saudi oil facilities and rising market concerns about supply constraints, Brent crude prices rose to around $102 per barrel. The rally in crude oil also pushed US Treasury yields higher, as the market believed that elevated energy prices would force central banks to tighten monetary policy. This offset the slight weakening of the dollar following the release of the Fed's September meeting minutes. The minutes showed that the Fed remains concerned about inflation, but did not change market expectations that it will keep interest rates unchanged in October.