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

 


NZ dollar falls as Republicans call of fiscal cliff vote

NZ dollar heads for 1.9 percent weekly fall as Republicans call off vote on fiscal cliff

By Paul McBeth

Dec. 21 (BusinessDesk) - The New Zealand dollar fell, and is headed for a 1.9 percent weekly decline, after US Republicans called off a vote on a plan to avert the fiscal cliff of US$600 billion tax increases and spending cuts, raising the risk of recession next year.

The kiwi fell to 83.02 US cents at 5pm in Wellington from 83.32 cents at 8.30am and 83.47 cents yesterday. The trade-weighted index fell to 74.11 from 74.46 yesterday, and is heading for a 1.7 percent weekly decline.

US Republican leaders called off a vote in Congress on a measure put up by Speaker John Boehner to break the deadlock on negotiations with the White House, pushing out any deal until after Christmas. As US legislators drag their heels on cutting a deal, markets grow more pessimistic after similar delays over lifting the nation's debt ceiling led to a credit rating downgrade last year.

"They're all coming back after Christmas and the longer they go, the worse it gets," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional at Auckland. "It's going to be a little risk off for the next couple of days" which will weigh on the kiwi dollar, he said.

New Zealand's currency took a hit yesterday after government figures showed the economy grew at a 0.2 percent quarterly pace in the September quarter, half what economists were picking.

The kiwi dollar has been one of the top performing currencies this year, having gained 6.7 percent this year, and Kelleher said traders will be using the looming year-end to cash out on those gains.

The New Zealand dollar fell to 51.08 British pence from 51.32 pence and dropped to 62.64 euro cents from 63.09 cent. It sank to 69.65 yen from 70.16 yen yesterday and fell to 79.46 Australian cents from 79.68 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news