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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news