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

 


NZ dollar falls on view US to sail over fiscal cliff

NZ dollar falls with equities on view US to sail over fiscal cliff

Dec. 28 (BusinessDesk) – The New Zealand dollar fell as US stocks tumbled on concern America is running out of time to avert US$600 billion of tax hikes and spending cuts starting Jan. 1 that threaten to stall the world’s biggest economy.

The kiwi dollar fell to 81.83 US cents from 81.89 cents at 5pm in Wellington yesterday. The trade-weighted index fell to 73.46 from 73.53.

The greenback rose and stocks on Wall Street fell, sending the Standard & Poor’s 500 Index down 1.1 percent, after Senate Majority Leader Harry Reid said an agreement between Democrats and Republicans before the year-end deadline seems unlikely. Meanwhile the yen has slipped to its weakest against the US dollar since August 2010 on the Japanese government’s declaration that it is determined to weaken its currency.

“There’s more and more fear as we get closer to the deadline that this isn’t going to pass,” said Alex Hill, senior currency strategist at HiFX. “It has been a big losing day for stocks markets so that’s added to it.”

Hill said the kiwi may trade in a range of 81.50 US cents to 82.20 cents today, with the potential for some volatility amid year-end squaring up in the thin market.

In one sign that investors are getting increasingly nervous about stalemate in Washington, the Chicago Board Options Exchange Market Volatility Index, known as Wall Street’s fear gauge, rose to 20.69, the highest since mid-June.

The kiwi dollar traded at 70.32 yen from 70.30 yen and fell to 78.91 Australian cents from 79.07 cents. It fell to 61.85 euro cents from 61.93 cents after reports showed an improvement in French consumer confidence and Italian business sentiment.

The local currency traded at 50.86 British pence from 50.80 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news