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

 


NZ dollar falls to week low against pound on BoE forecasts

NZ dollar falls to week low against pound after Bank of England ups growth forecasts

By Tina Morrison

Feb. 13 (BusinessDesk) – The New Zealand dollar dropped to a week low against the British pound after the Bank of England raised its growth forecasts, increasing speculation interest rates may rise next year.

The kiwi fell as low as 50.08 British pence and was trading at 50.11 pence at 8am in Wellington from 50.73 pence at 5pm yesterday. The local currency slipped to 83.15 US cents from 83.46 cents yesterday ahead of a report on US retail sales for January.

The Bank of England may be the second major central bank after New Zealand to raise interest rates this cycle as the UK economy improves. The BoE yesterday raised its forecast for 2014 growth to 3.4 percent from 2.8 percent and said the UK economy is gaining momentum, boosting demand for sterling.

“The BoE has said that it may start to hike its main cash rate as early as 2015 as the economic recovery starts to ramp up,” said Peter Cavanaugh, client adviser at Bancorp Treasury Services. “A 2015 interest rate hike would probably put the BoE as the second developed economy to raise official interest rates, following the RBNZ and, naturally, the GBP has rallied strongly.”

In New Zealand today, traders will be eyeing the latest BNZ-BusinessNZ PMI report at 10am which is expected to show continued strong expansion in January. Data for house sales in January is expected to be released about midday by the Real Estate Institute of New Zealand.

The New Zealand dollar was little changed at 92.03 Australian cents from 92.11 cents yesterday ahead of Australian labour market data scheduled for release at 1:30pm New Zealand time today. Economists expect Australia’s unemployment rate to have ticked higher to 5.9 percent from 5.8 percent.

Reserve Bank of Australia assistant governor Guy Debelle is scheduled to speak at a financial market event this afternoon while Federal Reserve chair Janet Yellen is set to deliver the Fed’s report to the Senate tonight.

The kiwi slipped to 61.13 euro cents from 61.23 cents yesterday after weak European industrial production data and comments from European Central Bank executive board member Benoit Coeure that the bank was very seriously considering a negative deposit rate.

The local currency weakened to 85.25 yen from 85.56 yen yesterday. The trade-weighted index dropped to 78.24 from 78.48 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Efficiency: Businesses And Households To Save From New Energy Plans

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news