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

 


NZ dollar extends slide on weak jobs data, gains vs. euro

NZ dollar extends slide on weak jobs data, gains vs. euro on ECB view

Feb. 8 (BusinessDesk) – The New Zealand dollar extended its slide following yesterday’s weak employment data while gaining against a broadly weaker euro after the European Central Bank kept interest rates at a record low.

The kiwi dollar fell to 83.05 US cents from 83.53 cents at 5pm in Wellington yesterday and briefly fell as low as 82.94 cents. It rose to 62.03 euro cents from 61.85 cents.

The local currency began its slide yesterday after government figures showed the participation rate fell to 67.2 percent in the fourth quarter, the lowest level in almost nine years, while employment shrank 1 percent. Meantime, European Central Bank president Mario Draghi sent the euro lower, saying he is concerned about the euro’s strength keeping a lid on inflation, taken as a hint of further interest rate cuts.

“The employment figures took the heat out of the kiwi,” said Alex Hill, a strategist at HiFX. “The euro was the biggest loser last night after the ECB kept rates on hold. And Draghi talked about downside risks to inflation if the euro remained high. That’s why the kiwi-euro is up slightly.”

The New Zealand dollar may trade in a range of 82.70 US cents to 83.30 cents today, he said.

The kiwi fell to 80.79 Australian cents from 80.98 cents ahead of the release of the Reserve Bank of Australia’s monetary policy statement today, which may provide clues to any further interest rate cuts across the Tasman.

The trade-weighted index declined to 75.48 from 75.71. The kiwi traded at 77.63 yen from 77.98 yen and fell to 52.90 British pence from 53.36 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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