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

 


NZ dollar holds below 83 US cts on Italian poll uncertainty

NZ dollar holds below 83 US cts as Italian election uncertainty erodes investor confidence

By Paul McBeth

Feb. 27 (BusinessDesk) - The New Zealand dollar held below 83 US cents in local trading as the uncertain election outcome in Italy dented investors' appetite for riskier, or higher-yielding, assets, and trumped an unchanged outlook for this season's payout to dairy farmers.

The kiwi traded at 82.43 US cents at 5pm in Wellington from 82.54 cents at 8am, down from 83.39 cents yesterday. The trade-weighted index fell to 75.49 from 76.28 yesterday.

The prospect of a stalemate after Italy's first general election since the global financial crisis has spooked investors, reigniting fears Europe's fourth biggest economy won't continue a drive for austerity, and that will seep into rest of the region.

Election results in Italy showed Pier Luigi Bersani, who supports the cost cutting programme, won the lower house by less than half a percentage point, while former Prime Minister Silvio Berlusconi secured a blocking vote in the Senate.

"That's going to hang over market sentiment as people fret about whether Italy can potentially be stable or if it's a big risk to Europe," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "It's not going to have a direct impact on the New Zealand dollar, more through the confidence channel."

The downbeat tone overshadowed Fonterra Cooperative Group affirming an expected farm-gate payment of $5.50 per kilogram of milk solids, and government figures showing a slightly bigger trade deficit than predicted last month.

The Fonterra announcement and trade figures "were a bit of a yawnfest with the focus still on Italy," Tennent-Brown said.

Northern Hemisphere investors will continue to look for any clues on whether Italy can make its election result work, or if it will call another election, and watch the second day of testimony by Federal Reserve chairman Ben Bernanke to policymakers in the US.

The kiwi fell to 63.10 euro cents from 63.84 cents yesterday and declined to 54.56 British pence from 54.78 pence. The local currency dropped to 80.62 Australian cents from 81.16 cents and fell to 75.75 yen from 76.83 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news