Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar trades at 3-week low as RBNZ rate cut weighed

NZ dollar trades at 3-week low as central bank seen with room to cut rates

Nov. 12 (BusinessDesk) - The New Zealand dollar traded near a three-week low amid speculation a weak jobs market gives the Reserve Bank more room to cut interest rates to stoke the economy, eroding the yields available in the local currency.

The kiwi dollar fell to 81.39 US cents from 81.45 cents in late New York trading on Friday. The trade-weighted index was at 72.96 from 72.94.

Markets are pricing in a 22 percent chance of a cut to the official cash rate at the central bank’s next meeting on Dec. 6, based on the Overnight Interest Swap curve. A rising jobless rate of 7.3 percent last week drove down the kiwi dollar though on a trade-weighted basis it is still above the 72 level the bank had forecast for the fourth quarter of this year.

“With the risk of an RBNZ interest rate cut now very real, the NZD/USD topside looks unlikely to be tested,” said Mike Jones, currency strategist at Bank of New Zealand. Still, with signs of an improving global economy “we doubt we’re on the cusp of a substantial downward correction.”

Locally, key data out this week is quarterly retail sales on Wednesday, with growth in sales forecast to have slowed to 0.5 percent, according to a Reuters survey, from 1.3 percent three months earlier.

The kiwi dollar fell to 78.23 Australian cents from 78.38 cents and traded at 64 euro cents from 64.06 cents.

The New Zealand dollar slipped to 51.19 British pence from 51.23 pence and was at 64.68 yen from 64.71 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news