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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news