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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news