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

 


NZ dollar falls as Ukraine tensions spook investors

NZ dollar weakens as investors seek haven assets on concern over military tension in Ukraine

By Tina Morrison

March 3 (BusinessDesk) – The New Zealand dollar weakened as investors favoured safe haven assets on concern about increased instability in the Ukraine after Russian troops moved into the region’s Crimean Peninsula.

The kiwi slipped to 83.54 US cents at 8am in Wellington from 84.21 cents at the New York close and 83.24 cents at 5pm on Friday. The trade weighted index dropped to 78.50 from 78.85 on Friday.

Investors are turning to bonds, gold and the yen and moving out of higher risk investments in stocks and currencies such as the kiwi amid heightened geopolitical uncertainty after Russia sent troops into Crimea, which is dominated by Russian speakers, following an uprising which led to last month’s overthrow of pro-Kremlin president Viktor Yanukovych. Ukraine has put its forces on combat readiness and said an invasion would be an act of war, while US president Barack Obama warned Russia not to intervene.

“Early trading this morning will be dominated by news that Russia effectively annexed the Crimean Peninsula,” Bank of New Zealand currency strategist Raiko Shareef said in a note. “These actions will be negative for risk assets this morning, and the US dollar, Japanese yen and Swiss franc will likely benefit.”

The New Zealand dollar dropped to 84.73 yen at 8am in Wellington from 85.42 yen at 5pm on Friday and fell to 73.53 Swiss franc from 74.54 franc.

In New Zealand today, traders are expecting the 10:45am release of fourth quarter terms of trade to remain strong.

Reports from China are due on official non-manufacturing PMI and HSBC manufacturing PMI while the US has an ISM manufacturing report.

The kiwi advanced to 93.92 Australian cents at 8am from 93.72 cents on Friday ahead of reports on Australian inventories, home sales and prices, and an inflation indicator. The local currency weakened to 60.67 euro cents from 61.24 cents on Friday after a report on Eurozone inflation beat forecasts, cooling expectations the European Central Bank would add further stimulus to the region when it meets this week. The local currency dropped to 49.93 British pence from 50.30 pence on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news