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

 


NZ dollar falls to two-week low vs yen

NZ dollar falls to two-week low vs yen as investors shun riskier assets

By Tina Morrison

May 16 (BusinessDesk) – The New Zealand dollar slid to a two-week low against the yen as investors shied away from so-called riskier currencies in favour of safe havens.

The kiwi touched 87.43 yen early this morning, its lowest level since April 29, and was trading at 87.73 yen at 8am in Wellington, from 88.43 yen at 5pm yesterday. The local currency weakened to 86.38 US cents from 86.84 cents yesterday.

The Japanese currency strengthened after reports showed lower-than-expected first quarter gross domestic product in Europe, a softer US housing market, an unexpected decline in US industrial production in April, while tensions between the Ukraine and Russia continued. Adding to demand for the yen, the nation’s first quarter economic growth exceeded forecasts.

“In times of risk aversion, the New Zealand dollar weakens and the Japanese yen strengthens,” ANZ Bank New Zealand senior economist Mark Smith and senior foreign exchange strategist Sam Tuck said in a note. “This cross is showing signs of risk aversion.”

The kiwi will probably trade between 87.25 yen and 88.25 yen today, ANZ said.

Today, Prime Minister John Key, Finance Minister Bill English and Economic Development Minister Steven Joyce are speaking to business audiences following the announcement of the 2014 budget yesterday, where the government signalled bigger fiscal surpluses in an economy seen to be growing faster than previously thought.

Traders will also be eyeing US Federal Reserve Chair Janet Yellen’s speech to the US Chamber of Commerce, scheduled shortly after 10am New Zealand time today.

The New Zealand dollar weakened to 62.99 euro cents from 63.32 cents yesterday. Euro-area GDP rose 0.2 percent in the first quarter, half as much as economists had forecast, increasing speculation the European Central Bank will add more stimulus at its meeting next month.

The kiwi slipped to 51.43 British pence from 51.77 pence yesterday, and dropped to 92.29 Australian cents from 92.61 cents. The trade-weighted index fell to 80.32 from 80.72 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