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

 


NZ dollar falls below 83 cts, through key support, on Italy

NZ dollar falls below 83 cts, through key support, on Italian fears

Feb. 27 (BusinessDesk) – The New Zealand dollar fell below 83 US cents and breached a key technical support level on fears the inconclusive Italian election could herald a return to populist, anti-EU policy, which could spread to other indebted nations in the region.

The New Zealand dollar fell to 82.58 US cents from 83.39 cents at 5pm in Wellington yesterday. The currency broke through its 100-day moving average of 82.94 cents in New York trading. The trade-weighted index declined to 75.59 from 76.28.

The yield on Italy’s 10-year bonds shot up 40 basis points to a 14 year high and the selloff spread to bonds in Portugal and Spain after Pier Luigi Bersani won control of the lower house Silvio Berlusconi’s party gained a blocking share of the senate. The kiwi didn’t move much after Federal Reserve chairman Ben Bernanke defended the bank’s asset purchases.

The kiwi’s break through a key support level saw the selloff “accelerate very quickly as stops got taken out,” said Stuart Ive, a strategist at HiFX. “It’s risk off on the back of the Italian election. The key to this is whether they’re going to get some sort of stability or are they going to a deeper and darker place.”

In the first of his two-day senate testimony, Bernanke said the benefits of the Fed’s vast asset purchases outweighed the risks, helping lift growth while inflation remained tame. The comments follow minutes of the last Federal Open Market Committee meeting, released last week, that showed members were divided on the size and length of the programme.

“Asset purchases are not going to be taken away any time soon, so the kiwi should find some support,” Ive said. “Exporters might buy the kiwi now at these levels.”

The kiwi fell to 63.21 euro cents from 63.84 cents and sank to 54.54 British pence from 54.78 pence. The local currency dropped to 80.67 Australian cents from 81.16 cents and fell to 75.85 yen from 76.83 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