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

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news