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

 


NZ dollar drops to 17-mth low vs. GBP on BOE housing view

NZ dollar drops to 17-month low vs. British pound after BOE pulls back on lending scheme

By Tina Morrison

Nov. 29 (BusinessDesk) – The New Zealand dollar fell to the lowest in more than 17 months against the British pound after the Bank of England bet the UK housing market was strong enough to withdraw support for a lending scheme.

The kiwi dropped as low as 49.53 British pence in local trading early this morning, the lowest level since June last year. The local currency was trading at 49.74 pence at 8am in Wellington, from 50.07 pence at the 5pm market close yesterday. The New Zealand dollar slipped to 81.29 US cents from 81.65 cents at yesterday.

The British pound strengthened after the Bank of England unexpectedly said it would end mortgage incentives for banks under its Funding for Lending Scheme from Jan. 1. The bank is ending the scheme, which allows banks to borrow from the BOE at discounted interest rates for mortgage lending purposes, to slow rising UK house prices and prevent the emergence of future imbalances.

“The BOE wants to lean against the strong rise in UK house prices,” David Croy, head of markets research at ANZ New Zealand, said in a note. “It is a tightening in monetary conditions and may be viewed by some as the precursor to a rise in interest rates. The move has pushed the GBP even higher, making a fresh high for the year.”

Trading was quieter than normal because of the US Thanksgiving holiday.

In New Zealand today, traders will be eyeing building consent figures for October at 10:45am which are expected to show a third month of gains.

New Zealand money supply data for October will be published by the Reserve Bank of New Zealand at 3pm.

The New Zealand dollar weakened to 89.19 Australian cents from 89.43 cents yesterday after an Australian report yesterday showed stronger-than-expected private capital expenditure intentions.

The local currency slipped to 83.09 yen from 83.32 yen yesterday. The kiwi edged lower to 59.76 euro cents from 60.12 cents yesterday as German inflation data beat forecasts and European confidence improved. The trade-weighted index slipped to 76.39 from 76.73 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

    Extended Warranties: Godfreys Fined For Agreements It Sold

    New Zealand Vacuum Cleaner Company Limited (trading as Godfreys) was today fined $58,000 in the Manukau District Court after earlier pleading guilty to 10 charges relating to its extended warranty agreements. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news