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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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