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

 

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news