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

 

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