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

 


NZ dollar drops vs. Russian ruble as Ukraine tensions ease

NZ dollar drops to five-week low vs. Russian ruble as Putin comments ease tensions

By Tina Morrison

May 8 (BusinessDesk) – The New Zealand dollar dropped to a five-week low against the Russian ruble as political tensions eased in Ukraine following conciliatory comments from Russian president Vladimir Putin.

The kiwi touched 30.24 ruble this morning, and was trading at 30.27 ruble at 8am in Wellington, from 30.80 ruble at 5pm yesterday. The local currency slid to 86.69 US cents from 86.88 cents yesterday after Reserve Bank governor Graeme Wheeler said he may sell the kiwi which he considers overvalued.

The Russian currency advanced, the nation’s equities rallied and its government bond yields fell after Putin called on separatists in eastern Ukraine to postpone Sunday’s referendum on independence for the mostly Russian-speaking region. Putin also said Moscow had withdrawn troops from the border with Ukraine, which had been a source a tension with Western powers.

“It seems that Putin has taken a less provocative stance and therefore that’s toned down a lot of nervousness and unwound some of the recent safe haven buying of assets,” said Peter Cavanaugh, client advisor at Bancorp Treasury Services.

Putin made his comments after talks with the Organisation for Security and Cooperation in Europe, which said it would soon propose a “road map” to defuse the Ukraine crisis.

Still, Bancorp’s Cavanaugh said deep tensions in the region were long-standing and were unlikely to be resolved easily.

“There is no quick fix,” Cavanaugh said.

In New Zealand today, traders will be eyeing the midday release of the latest house price figures for April from state valuer Quotable Value. Finance Minister Bill English speaks to the INFINZ dinner in Auckland tonight.

China’s trade balance for April is also scheduled for publication today.

Tonight, Federal Reserve chair Janet Yellen meets with the Senate Budget Committee. Yesterday, in testimony to Congress, Yellen said both the US economy and the American jobs market have continued to improve, but stressed that the Federal Open Market Committee plans to maintain the stream of easy money.

The New Zealand dollar slipped to 92.88 Australian cents from 93.02 cents yesterday ahead of the release of Australia’s March employment figures today at 1:30pm New Zealand time.

The local currency edged lower to 62.30 euro cents from 62.38 cents ahead of the European Central Bank decision on interest rates tonight where no change is expected.

The kiwi was little changed at 51.12 British pence from 51.16 pence yesterday ahead of the Bank of England decision on interest rates where the benchmark is expected to remain on hold.

The New Zealand dollar advanced to 88.34 yen from 88.26 yen yesterday. The trade-weighted index weakened to 80.32 from 80.43 yesterday.

(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