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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news