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

 

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Stats: Wind And Geothermal Emerge As Significant Sources Of Energy

Geothermal’s contribution to New Zealand’s total renewable energy generation increased from 11.5 percent in 2007 to 21 percent in 2015.... The value of wind jumped from $238 million (2 percent of total renewable energy generation) in 2007 to $884 million (6 percent) in 2015. More>>

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news