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

 


NZ dollar falls to week low in anticipation of improving US

NZ dollar falls to week low as greenback advances in anticipation of improving growth outlook

By Tina Morrison

May 12 (BusinessDesk) – The New Zealand dollar fell to a week low as the greenback strengthened against its major counterparts in anticipation the world’s largest economy is improving.

The kiwi touched 86.02 US cents over the weekend, and was trading at 86.16 cents at 8am in Wellington, from 86.10 cents at the New York close and 86.35 cents at 5pm on Friday. The trade-weighted index edged up to 80.12 from 80.06 on Friday.

The US dollar index, which measures the greenback against a basket of currencies, touched 79.915 over the weekend, its highest level this month. The US currency is expected to appreciate against this year as the US economy expands and the Federal Reserve reduces its stimulus. Forecasters predict a rally against a basket of peers in each of the next four quarters, and gains of about 11 percent by the end of 2015, according to the median estimate in a Bloomberg News survey.

“The New Zealand dollar lost ground amidst a backdrop of US dollar strength,” Raiko Shareef, currency strategist at Bank of New Zealand, said in a note. “A strengthening US dollar was the dominant theme in the currency space. The US dollar gained against all the majors.”

The kiwi has initial support at 85.90 US cents and spurts higher toward 86.70 cents should be challenged, BNZ said.

Federal Reserve Bank of Atlanta president Dennis Lockhart said in Dubai yesterday the US economy should grow at an annualised rate of 3 percent or more in the second quarter, despite expanding just 0.1 percent in the first quarter. Still, he said it may not be clear for some time if the pick-up is sustainable.

Lockhart also said he expected the US central bank to have run down its bond-buying programme by its October or December meeting and to start raising interest rates in the second half of next year.

In New Zealand today, the Real Estate Institute of New Zealand is expected to publish its latest house price figures for April.

The New Zealand dollar dropped to two-week low of 91.85 cents 91.96 Australian cents from 92.25 cents on Friday ahead of a monthly report on Australian business confidence and the latest credit card spending figures, both scheduled for release at 1:30pm New Zealand time.

The kiwi advanced to 62.62 euro cents from 62.40 cents on Friday, gained to 51.13 British pence from 51.03 pence and slipped to 87.77 yen from 87.82 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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