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

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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