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

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news