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

 


NZ dollar heads for 0.8% weekly fall

NZ dollar heads for 0.8% weekly fall as local rates story, Fed policy weigh

By Paul McBeth

Feb. 21 (BusinessDesk) - The New Zealand dollar is heading for a 0.8 percent fall this week as traders weigh up the prospect of rising interest rates locally against the prospect of a stronger greenback as the Federal Reserve pulls back on printing money.

The kiwi fell to 82.99 US cents at 5pm in Wellington from 83.64 cents at the close of trading last week. It was up from 82.78 cents at 8am and 82.57 cents yesterday. The trade-weighted index fell to 77.99 from 78.73 yesterday, and is heading for a 0.4 percent weekly decline from 78.29 last week.

A BusinessDesk survey of 11 traders and strategists on Monday predicted the local currency would trade between 82 US cents and 84.80 cents this week. Four expected the kiwi to rise, four picked it to remain relatively neutral and three anticipated a decline.

Minutes to the Fed’s last policy meeting released this week indicated the US central bank has no plans to slow down its withdrawal of quantitative easing. While upbeat American manufacturing figures fuelled some investors’ appetite for risk after weak Chinese and European industrial production numbers, the Federal Reserve’s removal of monetary stimulus is expected to underpin the greenback.

Against that, traders are weighing up the prospect New Zealand’s Reserve Bank will lift the official cash rate next month as it looks to head off the threat of future inflation that may appear in an accelerating economy.

“In my view, the kiwi will decline over 2014 as the US comes back stronger,” said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. “I’m really looking for the RBNZ to start getting traction, when the market decides it’s serious enough and it’s time to exit its position, which will happen before the economy slows down, or when the US comes into spring, the snow disappears, they get a bumper ag season and the economy goes boom.”

Traders will be looking to see if anything is announced when finance ministers and central bank governors from the Group of 20 largest economies meet in Sydney this week.

The local currency edged up to 92.35 Australian cents from 92.26 cents yesterday, and gained to 85.05 yen from 84.14 yen. It rose to 60.51 euro cents from 60.03 cents yesterday, and increased to 49.84 British pence from 49.51 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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