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

 


NZ dollar may test 77 US cts as Asian stocks sink

NZ dollar may test 77 US cts as Asian stocks sink amid Chinese liquidity concerns

By Paul McBeth

June 25 (BusinessDesk) - The New Zealand dollar may fall below 77 US cents in European and US trading after fears over China’s banking sector sparked a sell-off in Asian stock markets, and prompted investors to ditch risk-sensitive currencies.

The kiwi declined to 77.16 US cents at 5pm in Wellington from 77.55 cents at 8am and 77.47 cents yesterday. The trade-weighted index fell to 72.79 from 73.21 yesterday.

Stocks across Asia fell as investors digest the impact of the People’s Bank of China tightening of banking liquidity fuelled concerns a cash crunch will sap growth in the world’s second biggest economy. China’s Shanghai Composite Index fell 3.8 percent in afternoon trading, while Japan’s Nikkei 225 index was down 1.8 percent, and Hong Kong’s Hang Seng Index dropped 1.4 percent.

The New Zealand and Australian economies are closely linked with China’s fortunes, with both countries exporting large quantities into the world’s most populous nation.

“As long as the China jitters linger, the kiwi’s going to suffer more than most,” said Mike Jones, currency strategist at Bank of New Zealand in Wellington. “The kiwi’s still consolidating in the 77 to 78 US cents range, but looks likely to test the bottom of that tonight.”

The local currency has shed about 4.1 percent against the greenback since Federal Reserve chairman Ben Bernanke said last week the central bank may start tapering its $85 billion a month asset purchase programme this year if the economic data continues to improve.

Jones said the downtrend in the local currency probably isn’t enough to push it below 75 US cents, and any turnaround in US data may spark a rally towards 80 cents.

The kiwi slipped to 83.47 Australian cents from 84.08 cents yesterday and dropped to 75.23 yen from 76.21 yen. The local currency weakened to 58.83 euro cents from 59.11 cents and declined to 49.98 British pence from 50.39 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news