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

 

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news