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

 


NZ dollar extends drop as Asian stock markets fall

NZ dollar extends drop as Asian stock markets fall amid souring global mood

By Paul McBeth

Feb. 21 (BusinessDesk) - The New Zealand dollar extended its decline as stocks across Asia followed a souring global mood with uncertain elections in Italy and divisions appearing in the Federal Reserve's strategy to buy unlimited bonds.

The kiwi fell to 83.38 US cents at 5pm in Wellington from 83.57 cents at 8am and 84.08 cents yesterday. The trade-weighted index decreased to 76.23 from 76.33 yesterday.

Stocks in Asia fell with China's Shanghai Composite Index down 2.7 percent, Japan's Nikkei 225 index falling 1.3 percent, and Australia's S&P/ASX 200 index down 2 percent. Market sentiment has turned around since US stocks touched five-year highs as investors get nervous about this weekend's Italian election that could throw a spanner into Prime Minister Mario Monti's austerity drive.

Today's release of minutes to the latest Federal Open Market Committee meeting did to give them confidence, showing division over the pace of monthly purchases, and some officials raised the potential costs of the eventual exit from the quantitative easing programme.

"There's a bit or nervousness after it looked like it was all one-way traffic," said Imre Speizer, market strategist Westpac Banking in Auckland. "If we break below 83 US cents then it's more sinister, the trend is broken and we go lower to 81 at a minimum."

New Zealand's currency tumbled yesterday after Reserve Bank governor Graeme Wheeler said the kiwi was over-valued and reminded the market of his criteria for intervention. The currency has been in favour in recent months as investors look for higher interest rates in growing economies.

The kiwi rose to 62.88 euro cents from 62.67 cents yesterday, and increased to 54.81 British pence from 54.43 pence. It advanced to 81.43 Australian cents from 81.14 cents, and traded at 77.90 yen from 78.54 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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