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

 


NZ dollar falls as Fed minutes show desire to end QE in 2013

NZ dollar falls as Fed minutes show desire to end QE this year

Jan. 4 (BusinessDesk) – The New Zealand dollar fell below 83 US cents after minutes of the US Federal Reserve’s last policy meeting showed several members favoured an end to quantitative easing this year, earlier than the Fed’s stated timeline of 2015.

The kiwi dollar dropped to 82.89 US cents from 83.21 cents at 5pm in Wellington yesterday. The trade-weighted index was at 74.71 from 74.75.

The greenback strengthened against the euro and US stocks fell after the minutes of the Federal Open Market Committee meeting in December, which confirmed the Fed’s bond buying programme while highlighting concern among some committee members to extend the programme further. Some officials “thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013,” the minutes say.

“That’s quite a contrast to the official line,” said Mike Jones, a strategist at Bank of New Zealand. “It has stoked fears of an early exit from the zero interest rate policy.”

The New Zealand dollar may trade in a range of 82.60 US cents to 83.20 cents today, he said.

The greenback strengthened even though Moody's Investors Service said that agreement on the fiscal cliff won't cut the deficit enough to prevent a downgrade of the American sovereign credit rating. Data pointed to continued improvement in the US economy.

The private sector boosted payrolls by 215,000 in December after adding 148,000 jobs in November, according to the ADP National Employment Report, while initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 372,000 last week, according to Labor Department data.

The kiwi dollar rose to 51.49 British pence from 51.28 pence and traded at 63.37 euro cents from 63.33 cents. It fell to 79.14 Australian cents from 79.36 cents and slipped to 72.46 yen from 72.58 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news