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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news