October 24, 2017 / 2:48 PM / a year ago

FOREX-U.S. dollar steady, New Zealand currency hits 5-month low

    * New Zealand dollar falls on central bank uncertainty
    * Greenback near 3-month high vs yen in wake of Abe win
    * Euro steady ahead of ECB policy meeting on Thursday

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Oct 24 (Reuters) - The dollar was little changed
on Tuesday against a basket of currencies on speculation about
possible fresh leadership at the U.S. Federal Reserve and bets
that a tax cut package is on track to be enacted.
    The New Zealand dollar was the biggest mover among G10
currencies, declining to a five-month low after the incoming
Labour-led coalition government said it plans to review and
reform the Central Bank Act to include employment, alongside
inflation, as a dual target.
    "What's dominating the narrative is the Fed chair position.
You overlay that with some momentum on tax reform. That puts the
dollar on decent footing," said Mazen Issa, senior FX strategist
at TD Securities in New York.
    At 10:15 a.m. (1415 GMT), the index that tracks the dollar
against a group of six currencies, was at 93.829, down
0.1 percent from Monday when it reached a 2-1/2-week peak of
    U.S. President Donald Trump told reporters on Monday he is
"very, very close" to deciding who should lead the Federal
Reserve after interviewing five candidates for the position.

    His possible nominees include current Fed Chair Janet
Yellen, whose term expires in February, as well as Fed Governor
Jerome Powell, Stanford University economist John Taylor,
Trump's chief economic advisor Gary Cohn, and former Fed
Governor Kevin Warsh.
    Hopes that Congress will pass a package of tax cuts have
helped to strengthen the dollar and pushed U.S. stocks to record
highs, although skepticism has persisted in the absence of
details on the overhaul and perceived discord between Trump and
top Republican lawmakers.
    The greenback hovered near a three-month high versus the yen
 on Tuesday, gaining 0.3 percent at 113.79 yen. 
    It held below a three-month peak of 114.09 yen in reaction
to Japanese Prime Minister Shinzo Abe's ruling Liberal
Democratic Party-led coalition election win on Sunday. 
    Abe's victory reduced anxiety that the economic steps
implemented under his leadership, including an expansive
asset-purchase program by the Bank of Japan, would be disrupted.
    The euro increased 0.2 percent to $1.1767 and rose
0.5 percent to 133.91 yen in advance of the European
Central Bank's policy meeting on Thursday. 
    Traders have expected the ECB to signal a gradual removal of
monetary stimulus as euro zone economic growth has improved.
    The New Zealand dollar has lost nearly 5 percent on worries
that a harder stance on immigration and foreign investment under
its new government would hamper economic growth. It shed 0.75
percent to $0.6913 after hitting its lowest level since May 19.

    Currency bid prices at 10:17AM (1417 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1772        $1.1747     +0.21%         +11.98%     +1.1775     +1.1743
 Dollar/Yen       JPY=        113.7800       113.4200    +0.32%         -2.64%      +113.9800   +113.2700
 Euro/Yen         EURJPY=     133.94         133.26      +0.51%         +8.77%      +133.9900   +133.1800
 Dollar/Swiss     CHF=        0.9874         0.9848      +0.26%         -2.99%      +0.9888     +0.9839
 Sterling/Dollar  GBP=        1.3157         1.3196      -0.30%         +6.66%      +1.3227     +1.3147
 Dollar/Canadian  CAD=        1.2647         1.2650      -0.02%         -5.83%      +1.2668     +1.2621
 Australian/Doll  AUD=        0.7784         0.7805      -0.27%         +7.89%      +0.7824     +0.7774
 Euro/Swiss       EURCHF=     1.1625         1.1570      +0.48%         +8.47%      +1.1631     +1.1571
 Euro/Sterling    EURGBP=     0.8947         0.8902      +0.51%         +5.04%      +0.8949     +0.8894
 NZ               NZD=        0.6909         0.6964      -0.79%         -0.46%      +0.7003     +0.6907
 Dollar/Norway    NOK=        7.9809         7.9989      -0.23%         -7.60%      +8.0162     +7.9803
 Euro/Norway      EURNOK=     9.3965         9.4001      -0.04%         +3.42%      +9.4155     +9.3861
 Dollar/Sweden    SEK=        8.2021         8.1989      +0.22%         -9.94%      +8.2103     +8.1865
 Euro/Sweden      EURSEK=     9.6549         9.6335      +0.22%         +0.78%      +9.6584     +9.6308
All spots FX= 
Tokyo spots AFX= 
Europe spots EFX= 
Volatilities FXVOL= 
Tokyo Forex market info from BOJ TKYFX World central bank news
Economic Forecasts... ECON   Official rates...INT/RATE
Forex Diary.......MI/DIARY   Top events........M/DIARY
Diaries...........DIARY Diaries Index........IND/DIARY
Press Digests.....PRESS Polls on G7 economies..SURVEY/
European markets......MARKETS/))


 (Additional reporting by Ritvik Carvalho in London; Editing by
Richard Balmforth and Paul Simao)
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