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

 


"Risk-off" suddenly in vogue for kiwi dollar

"Risk-off" suddenly in vogue for kiwi dollar as emerging market concerns stifle risk appetite

By Paul McBeth

Jan. 24 (BusinessDesk) - The New Zealand dollar was little changed as concerns about emerging markets eroded investors’ appetite for risky assets after Argentina devalued the peso and Turkey’s lira plunged when its central bank intervened in foreign exchange markets.

The kiwi traded at 82.88 US cents at 8am, paring a gain in Northern Hemisphere trading, from 82.84 cents at 5pm in Wellington yesterday. The trade-weighted index dropped to 78.43 from 78.61 yesterday.

Argentina’s peso slumped 14 percent to 7.90 per US dollar after policy makers stopped buying foreign currency to prop up the peso in a bid preserve the central bank’s reserves, and Turkey’s lira weakened 1.6 percent to 2.2934 per US dollar after the nation’s central bank in a bid to shore up the currency. That raised fears about the strength of emerging economies, which were already on the back foot after a weaker than expected Chinese manufacturing report yesterday.

“It’s been a while since we’ve had an old-fashioned risk-off day and that’s what this is,” said Sam Tuck, senior FX strategist at ANZ New Zealand in Auckland. “That’s why the kiwi’s off from above 83 (US cents).”

The currency may trade between 82.20 US cents and 83.20 cents today, according to ANZ economists.

ANZ’s Tuck said the fears over emerging markets weighed more heavily on the Australian dollar than the kiwi, which rose to 94.59 Australian cents from 94.03 cents yesterday.

Investors will note the Reserve Bank’s December credit card spending figures for release today.

The local currency fell to 60.54 euro cents at 8am in Wellington from 61.06 cents yesterday after better than expected European manufacturing figures bolstered confidence in the eurozone’s economy.

The kiwi fell to 85.48 yen from 86.37 yen yesterday, and slipped to 49.85 British pence from 49.93 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news