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

 


NZ dollar extends drop after traders seize on ‘intervention'

NZ dollar extends slide after traders seize on ‘intervention’, little in Fed minutes

Feb. 21 (BusinessDesk) – The New Zealand dollar extended its slide from yesterday when Reserve Bank governor Graeme Wheeler outlined possible responses to a high kiwi and traders latched onto his use of the word intervention. The kiwi didn’t move much after the release of Federal Reserve minutes.

The New Zealand dollar fell to 83.53 US cents from 84.08 cents at 5pm in Wellington yesterday. It was at 84.58 cents before Wheeler’s speech notes were released. The trade-weighted index was at 76.27 from 76.33.

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.” That was enough to spark a sell-off in the currency as the word intervention got flashed across trader screens. Minutes of the Federal Open Market Committee’s last meeting showed members favoured varying the fed’s monthly bond purchases.

“Everyone latched onto certain parts of (Wheeler’s) speech regarding intervention,” said Dan Bell, currency strategist at HiFX. “I think the market has over-reacted. He outlines a number of measures that could be used but this was more of an academic position than a policy position.”

The kiwi may trade in a range of 83.20 US cents to 84 cents today.

Bell said while the minutes of the Fed meeting showed there were differences of opinion between voting members, “I don’t think that was news to many people. At the moment policy response continues to sit within the more dovish camp,” he said.

The kiwi rose to 54.80 British pence from 54.43 pence and rose to 62.82 euro cents from 62.67 cents.

The local currency rose to 81.32 Australian cents from 81.14 cents and fell to 78.34 yen from 78.54 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news