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

 


NZ dollar drops to three-week low as upward momentum slows

NZ dollar drops to three-week low as investors bet currency may not advance further

By Tina Morrison

April 29 (BusinessDesk) – The New Zealand dollar fell to its lowest in more than three weeks overnight as investors took profits on the expectation the local currency may not advance further.

The kiwi touched 85.19 US cents early this morning and was trading at 85.28 cents at 8am in Wellington from 85.75 cents at 5pm yesterday. The trade-weighted index slipped to 79.42 from 79.78 yesterday.

Demand for the nation’s currency pushed the kiwi to a two-and-a-half year high of 87.44 US cents on April 10, however the kiwi has been in decline since then on the expectation higher interest rates are already priced in to its value and it may not appreciate further. The Reserve Bank has raised the benchmark rate two times in as many months and is expected to continue hiking to curb inflation.

“Everything is priced in for the kiwi in terms of these rate rises and when you are at elevated levels, you have only one place to go,” said Stuart Ive, senior advisor at OMF. “People are quite happy to sell the kiwi at elevated levels that we are seeing currently and it does appear that it is beginning to struggle a little bit.”

Escalating tensions in the Ukraine and an expected continuation of tapering at this week’s Federal Reserve meeting are also weighing on the kiwi, Ive said.

The currency may trade between 84.90 US cents and 85.80 cents today, Ive said.

Later today, traders will be eyeing New Zealand’s latest trade figures for March, scheduled for release at 10:45am. The Reserve Bank also publishes data on high-debt mortgage lending at 3pm.

There was little currency reaction to this morning’s release of the Labour Party’s proposed changes to the Reserve Bank Act, which aims to broaden the central bank’s objective. The kiwi was trading at 85.31 US cents at 8:30am from 85.28 cents at 8am, immediately before the release of the policy.

September’s election is probably still too far away for proposed policy changes to impact the currency, said OMF’s Ive.

Japanese banks are closed today in observance of Showa Day.

The New Zealand dollar dropped to 92.17 Australian cents from 92.36 cents yesterday, fell to 61.61 euro cents from 62.03 cents, slipped to 50.77 British pence from 51.07 pence and declined to 87.47 yen from 87.60 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news