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

 


NZ dollar sinks to three-week low as equities fall

NZ dollar sinks to three-week low as equities fall, fiscal talks in focus

Dec. 24 (BusinessDesk) – The New Zealand dollar fell to a three-week low against the greenback after equities weakened and doubts grew on the ability of US Republicans and Democrats to reach agreement on averting the fiscal cliff.

The kiwi dollar slipped to 82.32 US cents from 82.37 cents in New York on Friday and from 83.02 cents in Wellington at 5pm on Friday. The trade-weighted index was at 73.69.

On Wall Street, the Dow Jones Industrial Average and the Standard & Poor’s 500 Index both fell about 0.9 percent on Friday and traders were driven to the US dollar and the yen following Republican House Speaker John Boehner’s failure to win support from his party for a compromise deal. Senator Joe Lieberman told CNN Boehner’s stumble was “the first time I feel it's more likely that we'll go over the cliff than not.”

The fiscal cliff talks “seem to be lurching along to a poor ending,” said Tim Kelleher, head of institutional FX sales at ASB Institutional.

The decline in the Australian and New Zealand dollars was exacerbated by the biggest speculative long positions since 2003 in the currencies, making them more vulnerable when equities sold off on the back of the fiscal talks, he said. The kiwi dollar may trade in a range of 82 US cents to 82.75 cents today.

Failure to avert the fiscal cliff would mean some US$600 billion of tax increases and spending cuts kick in on Jan. 1, which risks sending the world’s biggest economy into recession in 2013.

The New Zealand dollar traded at 69.42 yen from 69.36 yen on Friday in New York, near a two-week low. The local dollar traded at 62.45 euro cents from 62.49 cents and slipped to 50.89 British pence from 50.96 pence. The kiwi traded at 79.15 Australian cents from 79.12 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news