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

 


NZ dollar falls on signs of faltering global growth

NZ dollar falls as signs of faltering global growth erode risk appetite

Nov. 15 (BusinessDesk) – The New Zealand dollar fell as weaker economic figures in US and Europe weighed on equity markets and eroded investors’ appetite for riskier, or higher yielding assets.

The kiwi dollar sank to 81.03 US cents from 81.67 cents at 5pm in Wellington yesterday. The trade-weighted index fell to 72.68 from 73.11.

The kiwi dollar added to its decline yesterday following weak retail sales after the euro zone's industrial production sank the most in more than three years in September and Greece's economy suffered a contraction for the 17th consecutive quarter. Meantime, in the US, Commerce Department data showed that retail sales slid more than expected in October.

“Overnight, the NZD/USD resumed its decline as global risk sentiment stuttered,” said Mike Jones, currency strategist at Bank of New Zealand. “The recent deterioration in the NZ economic backdrop means the NZD/USD is more exposed than usual to any cooling of global optimism.”

Weak retail sales and last week’s data showing third-quarter unemployment rose to 7.3 percent has economics pondering whether the economy grew at all in the latest three months. The Performance of Manufacturing Index is due out today and there are expectations manufacturing remains in contraction.

The kiwi slipped to 78.04 Australian cents from 78.13 cents and traded at 64.91 yen from about 64.90 yen yesterday. The New Zealand dollar tumbled to 63.52 euro cents from 64.22 cents and fell to 51.08 British pence from 51.41 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news