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


NZ dollar slips as fiscal cliff talks grind slower

NZ dollar slips as fiscal cliff talks grind slower in Washington

Dec. 21 (BusinessDesk) – The New Zealand dollar fell amid concern time is running out for politicians in Washington to avert the fiscal cliff and help prevent the world’s biggest economy falling into recession.

The kiwi dollar fell to 83.32 US cents from 83.47 cents at 5pm in Wellington yesterday. The trade-weighted index declined to 74.33 from 74.46.

Officials from President Barack Obama's administration told leaders of US business and financial-services groups that negotiations with House Speaker John Boehner have deteriorated in the last 24 hours, Bloomberg News reported, citing a person familiar with the meeting. Republicans in Congress will vote on Boehner's plan to raise taxes on incomes over US$1 million, though Obama is insisting on a US$400,000 threshold.

“The kiwi has had a stellar run in the last couple of weeks – the downside is where the risk lies,” said Michael Johnston, director of foreign exchange at HiFX. “Financial markets are still focused on the US fiscal cliff negotiations which seem to have stalled.”

The kiwi dropped yesterday after figures showed the economy grew 0.2 percent in the third quarter, half the expected pace, while historical revisions showed New Zealand suffered two recessions in the past four years. The Reserve Bank has forecast a pickup in growth for the fourth quarter.

The New Zealand dollar fell to 51.17 British pence from 51.32 pence and dropped to 62.94 euro cents from 63.09 cent. It rose to 70.31 yen from 70.16 yen after the Bank of Japan yesterday increased its asset purchase programme. The kiwi fell to 79.47 Australian cents from 79.68 cents.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news