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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news