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 Putin also said Moscow had withdrawn troops from the border with Ukraine, which had been a source a tension with Western powers.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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news