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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news