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

 


NZ dollar slips from 11-mth high ahead of Fed policy review

NZ dollar slips from 11-month high ahead of Fed policy review

By Paul McBeth

March 19 (BusinessDesk) - The New Zealand dollar slipped from an 11-month high ahead of the Federal Reserve’s monetary policy review, the first where new chair Janet Yellen will take questions from the media.

The kiwi fell to 86.05 US cents at 5pm in Wellington from 86.28 cents at 8am, though still up from 85.63 cents yesterday. The trade-weighted index rose to 80.19 from 79.87 yesterday.

The Federal Open Market Committee is expected to keep interest rates near zero and trim monthly quantitative easing by a further US$10 billion to US$55 billion when it ends its meeting on Wednesday in Washington. Traders will be looking to see Yellen’s take on how the US economy is tracking after a harsh winter weighed on the world’s biggest economy.

“I wouldn’t be surprised if Yellen showed more caution when she comes out with the press conference,” said Stuart Ive, senior client adviser at OMF in Wellington. “It’s more than likely kiwi dips should still be bought against the US dollar.”

The kiwi dollar rallied during the Northern Hemisphere session after Russia President Vladimir Putin quelled fears his nation would make a grab for more of Ukraine, stoking investors’ appetite for risk-sensitive assets.

OMF’s Ive said the kiwi dollar is at elevated levels, though that’s always the risk: “When you’re the first one to raise your head above the crowd, you’re always going to attract investment money.”

New Zealand’s current account deficit narrowed to $1.43 billion in the fourth quarter from $4.88 billion in the September period, with surging dairy exports offsetting an outflow of profits for foreign-owned companies.

Prices at Fonterra’s latest GlobalDairyTrade auction fell for a third time, with the trade-weighted price down 5.2 percent to a nine-month low US$4,563 per tonne.

The local currency also got a boost from an agreement between the New Zealand and Chinese governments to allow direct trade between the kiwi and yuan to try and stimulate further trade and investment. The kiwi gained to 5.3324 yuan from 5.2974 yuan yesterday.

The kiwi increased to 87.25 yen at 5pm in Wellington from 87.16 yen yesterday, and traded at 94.38 Australian cents from 94.24 cents. It rose to 61.81 euro cents from 61.46 cents, and gained to 51.86 British pence from 51.45 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news