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

 


NZ dollar pares slide as traders mull scope of rate hikes

NZ dollar pares slide as traders mull scope of rate hikes; GDP, Federal Reserve loom

March 17 (BusinessDesk) – The New Zealand dollar pared a decline against the greenback and the yen as traders look ahead to economic growth figures for confirmation of the local central bank’s track of interest rate increases.

The kiwi dollar traded at 85.35 US cents at 5pm in Wellington, up from 85.25 US cents at the start of the day and from 85.34 cents in New York on Friday. The kiwi rose to 86.69 yen from 86.34 yen at 8am in Wellington.

Figures on Thursday are expected to show the economy grew 0.9 percent in the fourth quarter of 2013, just above the central bank’s forecast last week, when it raised the official cash rate a quarter point to 2.75 percent and flagged the prospect of further increases. Also on Thursday will be the outcome of the US Federal Reserve monetary policy meeting, which traders expect to result in a further US$10 billion being shaved off its monthly bond-buying programme.

“Everything is out on the table, the RBNZ is clearly priced into the market,” said Alex Hill, head of dealing at HiFX. “So from that position they can only really disappoint.”

He said market participants are using the word tapering again in relation to the Fed after a hiatus and every step it takes to reduce the amount of dollars it is pumping into the financial system is ultimately going to help lift the greenback.

The local dollar may trade between 83.40 US cents and 86.50 cents this week, according to a BusinessDesk survey of nine traders and strategists. Six predict the kiwi will decline this week, while one expects an increase and two see it largely unchanged.

The kiwi dropped to 94.30 Australian cents from 94.64 cents. It traded at 61.36 euro cents from 61.32 cents at 8am and from 61.63 cents at 5pm on Friday, and was at 51.29 British pence, little changed from this morning and from 51.38 pence on Friday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news