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

 


NZ dollar falls as investors sell riskier assets

NZ dollar falls as investors sell riskier assets on emerging market concerns

By Tina Morrison

Feb. 3 (BusinessDesk) – The New Zealand dollar touched a five-month low as investors sold riskier assets on concern emerging markets and so-called risk assets will falter should global growth slow.

The kiwi touched 80.61 US cents over the weekend, its lowest since Sept. 11 last year. The local currency was trading at 80.73 cents at 8am in Wellington from 80.85 cents at the New York close and 81.50 cents at 5pm on Friday. The trade-weighted index slipped to 76.84 from 77.25 on Friday.

An MSCI index of emerging market stocks has dropped about 5 percent so far this year on signs China’s economy may be losing steam. The New Zealand dollar has weakened since Reserve Bank governor Graeme Wheeler last week kept interest rates on hold, disappointing some traders who expected a hike. Investors who had been holding the higher-yielding kiwi in anticipation of an early hike are now selling down their holdings as they price in the risk from emerging markets.

“Downward momentum in the NZD/USD continued as equities, and riskier assets generally, struggled,” Kymberly Martin, markets strategist at Bank of New Zealand, said in a note. “Global risk appetite may have the final say on NZD/USD direction near-term.”

A convincing break below 80.80 US cents would open the way for a pullback toward 80 cents and beyond, Martin said.

The New Zealand dollar touched a three-week low of 92.15 Australian cents and was trading at 92.19 cents at 8am from 92.65 cents on Friday. Australia has data on inflation, building permits and job advertisements today ahead of the Reserve Bank decision on interest rates tomorrow.

The kiwi fell to a month low of 59.68 euro cents and was trading at 59.84 cents at 8am from 60.11 cents on Friday after a report showed Eurozone inflation fell to an annual 0.7 percent pace from 0.8 percent. Economists had expected annual inflation of 0.9 percent.

The local currency touched a 20-month low of 48.91 British pence and was trading at 49.09 pence at 8am from 49.45 pence on Friday.

The New Zealand dollar touched a 12-week low of 82.24 yen, and was trading at 82.28 yen at 8am from 83.53 yen on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news