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

 


NZ dollar sinks after Wheeler outlines intervention criteria

NZ dollar sinks after RBNZ's Wheeler outlines intervention criteria

By Paul McBeth

Feb. 20 (BusinessDesk) - The New Zealand dollar shed more than half a US cent after Reserve Bank governor Graeme Wheeler outlined the central bank's criteria to intervene in currency markets, and said he was prepared to act when those were met.

The kiwi fell to 84.04 US cents at 5pm in Wellington from 84.61 cents immediately before Wheeler's speech and down from 84.37 cents yesterday. The trade-weighted index dropped to 76.30 from 76.77 yesterday.

RBNZ's Wheeler told the New Zealand Manufacturers' and Exporters' Association the kiwi dollar is significantly over-valued, and he "will intervene when the circumstances are right." The RBNZ can intervene in currency markets when the kiwi is at exceptional levels that aren't justified, is consistent with monetary policy, and when it will work. It last intervened in mid-2007.

"I don't think they're looking at intervening now - it needs to be quite a bit higher," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional. "He'd be pretty proud of his work" in talking down the kiwi, Kelleher said.

Wheeler also reaffirmed the central bank's forecasts for the official cash rate to remain unchanged until next year, and said "a higher exchange rate relative to expectations will lead to a lower than expected OCR."

"The market priced in rate hikes quite aggressively and he basically said rates are on hold until the end of 2013," Kelleher said. He expects buyers to emerge at 83.50/83.80 US cents.

New Zealand's currency got a boost earlier today from a 3.1 percent across all dairy products sold on Fonterra Cooperative Group's online trading auction. That was just 12 hours after reports China's quarantine authority destroyed branded locally produced milk powder.

The New Zealand dollar fell to 54.41 British pence from 54.56 pence and declined to 62.66 euro cents from 63.22 cents. It dropped to 81.14 Australian cents from 81.72 cents, and decreased to 78.54 yen from 79.08 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news