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


NZ dollar weakest performer as English talks down currency

NZ dollar weakest performer as English comments add to downward momentum

By Tina Morrison

Feb. 19 (BusinessDesk) – The New Zealand dollar was the weakest performer of major currencies overnight, after comments by Finance Minister Bill English that the kiwi may be 20 percent overvalued added to its downward momentum.

The kiwi fell to 83.02 US cents at 8am in Wellington, from 83.46 cents at 5pm yesterday, and was the weakest performing currency overnight according to Reuters calculations. The trade-weighted index weakened to 77.83 from 78.26 yesterday.

The New Zealand dollar declined after the Reserve Bank of Australia yesterday published the minutes from its last meeting, signalling it was not going to try to push the Aussie down any lower, luring in speculative investors who bet it will appreciate. That dampened demand for the kiwi which was hit further after quoted English saying that the local currency is overvalued.

“The move had already started after the RBA minutes yesterday from Australia and we saw kiwi/Aussie selling coming in to the market,” said Stuart Ive, senior advisor at OMF. “It’s a combination of things, the move was triggered by the RBA in a quiet period because of the US holiday yesterday but the momentum overnight has been followed through. The kiwi has been fairly loveless.”

The New Zealand dollar’s failure to break through 84 US cents had triggered selling from investors who wanted to take profits, Ive said.

“We have seen profit taking coming in on the kiwi’s failure to move any higher,” he said. The currency had buying support at around 83 US cents, he said.

“We may just tread water now around these levels until we get clearer direction,” Ive said. “I don’t think we are going to run away to the downside.”

Traders are awaiting tomorrow morning’s release of the Federal Reserve’s minutes from its last meeting and the latest HSBC China preliminary manufacturing PMI for February later that day.

A 1.2 percent drop in dairy product prices in the latest GlobalDairyTrade auction this morning wasn’t a bad result as prices remained elevated, Ive said.

The New Zealand dollar dropped to 91.89 Australian cents at 8am in Wellington from 92.08 cents at 5pm yesterday. The local currency slipped to 60.35 euro cents from 60.86 cents yesterday, weakened to 49.74 British pence from 49.88 pence and fell to 84.95 yen from 85.45 yen.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news