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

 


NZ dollar holds loss as Ukraine tension stokes risk aversion

NZ dollar holds loss as Ukraine tension stokes risk aversion

By Paul McBeth

March 3 (BusinessDesk) - The New Zealand dollar held its loss in local trading as heightening tensions in Ukraine weighed on investors’ appetite for higher-yielding assets.

The kiwi traded at 83.53 US cents at 5pm in Wellington from 83.54 cents at 8am, down from 84.21 cents on Friday in New York. The trade-weighted index fell to 78.40 from 78.65 at the New York close.

Stocks across Asia fell as investors sold down risk-sensitive assets as political leaders condemned steps by Russia to take control of the Crimean peninsula in Ukraine. The Group of Eight leading economies have suspended preparations for this June’s meeting in Sochi, Russia in protest over the moves, and US Secretary of State John Kerry is flying to Kiev, Ukraine to affirm his country’s support for the Eastern European nation.

“The longer we don’t see a topside break in the risk currencies, the more chance of going lower – the Aussie is looking very weak,” said Alex Hill, head of dealing at HiFX in Auckland. “We’ve had plenty of things like this that haven’t moved currency too much, but it makes an excuse” to sell risk-sensitive currencies, he said.

A BusinessDesk survey of 11 traders and strategists predicts the kiwi will trade between 81.80 US cents and 85 cents this week. Five expect the local currency to decline, three expect it to advance while three say it will likely be little changed.

Traders are pricing in a 4 percent chance of a rate cut at tomorrow’s Reserve Bank of Australia policy review after recent data showed the economy wasn’t recovering as quickly as anticipated. The kiwi traded at 93.70 Australian cents at 5pm in Wellington from 93.84 cents on Friday in New York.

That comes ahead of next week’s New Zealand central bank meeting, where governor Graeme Wheeler is expected to embark on the first interest rate hike of a tightening cycle.

The local currency dropped to 84.68 yen at 5pm in Wellington from 85.28 yen at the New York close last week, and was little changed at 60.62 euro cents from 60.71 cents. It slipped to 49.87 British pence from 50.04 pence last week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news