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


NZ dollar falls ahead of Yellen speech, local inflation data

NZ dollar falls ahead of Yellen speech, local inflation looms

By Paul McBeth

April 15 (BusinessDesk) - The New Zealand dollar fell ahead of a speech by Federal Reserve chair Janet Yellen as investors look for insight into the US central bank’s view on interest rates and await tomorrow’s release of local inflation figures.

The kiwi slipped to 86.51 US cents at 5pm in Wellington from 86.78 cents at 8am from 86.82 cents yesterday. The trade-weighted index declined to 80.26 from 80.45.

Yellen opens the Federal Reserve Bank of Atlanta’s financial markets conference, which is themed on proposals and actions in response to the global financial crisis. Investors will be looking for insight into the Fed’s thinking after minutes to its last policy meeting showed policy makers were concerned that projections for an interest rate rise were overstated and could be misconstrued by the market.

“Yellen is probably going to be the big one – when she opened her mouth last time it pushed back expectations when the Federal Reserve will go,” said Michael Johnston, senior trader at HiFX in Auckland. “I’d be surprised if the kiwi goes through 86.20 US cents unless Yellen says something surprising.”

Figures tomorrow are expected to show New Zealand’s consumers price index rose at an annual pace of 1.7 percent rate in the first quarter, according to a Reuters survey, the fastest pace since the fourth quarter of 2011. Accelerating inflation is behind the Reserve Bank’s shift to tighter monetary policy, and traders expect another rate hike next week to 3 percent.

The New Zealand dollar decreased to 92.11 Australian cents from 92.38 cents yesterday after minutes to this month’s policy review by Reserve Bank of Australia showed the central bank interest rates will likely stay on hold for some time as it tries to revive the economy.

The kiwi traded at 62.61 euro cents from 62.66 cents yesterday ahead of Germany’s ZEW survey of business confidence, and was little changed at 51.74 British pence from 51.88 pence. It traded at 88.13 yen from 88.20 cents yesterday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news