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

 


NZ dollar slips amid speculation of more Fed tapering

NZ dollar slips amid speculation Fed will further trim asset purchases next week

By Paul McBeth

Jan. 23 (BusinessDesk) - The New Zealand dollar fell against the greenback amid speculation the Federal Reserve will further trim its bond buying programme when it reviews policy next week.

The kiwi fell to 83.06 US cents at 8am in Wellington from 83.22 cents yesterday. The trade-weighted index was little changed at 78.81 from 78.86.

The Dollar Index, a measure of the greenback against a basket of currencies, rose as markets latched on to a Wall Street Journal report by Fed watcher Jon Hilsenrath predicting the US central bank will cut another US$10 billion from its monthly asset purchases to US$65 billion when it meets next week. Barring a weak employment report for December, the world’s biggest economy has been showing signs of recovery in recent months, giving the Fed scope to pull back its stimulus.

“Keeping the US dollar underpinned are expectations of further tapering,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “That’s proving to be a headwind for the kiwi.”

Westpac’s Speizer said the local currency has support at 83 US cents, though if it breaks below that level, “we should see it go half a cent lower.”

The kiwi fell to 50.10 British pence from 50.49 pence after UK government data showed unemployment fell to 7.1 percent, lower than the 7.3 percent markets were expecting, and after minutes to the last Bank of England meeting showed the board was united in its decision to keep interest rates and its asset purchase programme unchanged.

Traders will be looking toward Chinese manufacturing figures later today, while local manufacturing and consumer confidence data are also scheduled.

The kiwi traded at 93.85 Australian cents from 93.81 cents yesterday after government figures yesterday showed faster than expected inflation across the Tasman. The kiwi rose to 86.75 yen from 86.54 yen after the Bank of England maintained its plan to expand its monetary base.

The local currency was unchanged at 61.31 euro cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news