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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news