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

 


NZ dollar little changed amid drought fears

NZ dollar little changed as drought fears counter impact of rising stocks

Feb. 28 (BusinessDesk) – The New Zealand dollar was little changed as traders pondered the impact of drought on the dairy industry, the nation’s biggest exporter, offsetting the risk-on tone from US stocks near record highs.

The kiwi dollar traded at 82.57 US cents from 82.42 cents at 5pm in Wellington yesterday. The trade-weighted index was little changed at 75.51.

The government yesterday declared a drought in Northland and hinted that other regions may follow. Fonterra Cooperative Group yesterday kept its milk payout forecast unchanged even as global prices for dairy rise. Meantime the Dow Jones Industrial Average rose 1.2 percent to 14066.15, nearing its 2007 record.

“Some media articles around the drought and the impact on dairy are tempering the strength” of the kiwi dollar, said Alex Sinton, senior dealer at ANZ New Zealand. “It will strengthen up. We’ve had a reasonable cleanout.”

The local currency may trade in a range of 82.25 US cents to 82.95 cents today, Sinton said. It broke through key support below 83 cents this week.

Government figures yesterday showed exports of milk powder, butter and cheese fell 16 percent to $1.1 billion in January from the same month of 2012 and were down 7.7 percent in the 12 months through January. Fonterra chairman John Wilson said yesterday the company is “critically aware right now of the difficulties our farmers are experiencing” as extremely dry weather hits milk production and rives up feed costs.

Traders will be watching today for the ANZ Business Outlook for a broader take on business confidence and also will keep Australian capital spending data on the radar, given the Australia’s central bank sees investment in the resources sector near its peak.

Sinton said he doesn’t expect the Reserve Bank of Australia will be pushed into cutting rates though it will be “actively watching” the figures.

The kiwi dollar rose to 80.76 Australian cents from 80.61 cents. It slipped to 62.90 euro cents from 63.12 cents as the euro broadly strengthened following a successful Italian bond auction. The local currency traded at 54.50 British pence from 54.55 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news