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

 


NZ dollar falls to 3-week low vs. yen on growth concerns

NZ dollar falls to 3-week low vs. yen on global growth concerns

By Tina Morrison

May 20 (BusinessDesk) – The New Zealand dollar touched a three-week low against the yen as investors retreated to the haven of the Japanese currency on concerns global growth may be slowing.

The kiwi dropped as far as 87.29 yen early this morning and was trading at 87.42 yen at 8am in Wellington, from 87.60 yen at 5pm yesterday. The local currency slipped to 86.18 US cents from 86.34 cents yesterday.

The yen advanced to its strongest level against the US dollar in three months as US Treasury yields declined, signalling uncertainty about the outlook for US growth. Benchmark interest rates are at record lows in most major economies and the outlook for growth remains uncertain with the European Central Bank expected to provide further stimulus next month and softness emerging in China.

“The Japanese yen continues to strengthen, with some analysts pointing to percolating concerns about softer global growth and inflation,” Bank of New Zealand currency strategist Raiko Shareef said in a note. “The implication is that the Japanese yen benefits from a safe haven bid.”

The New Zealand dollar advanced to 92.42 Australian cents, from 92.28 cents yesterday after Standard & Poor’s was quoted in the Australian Financial Review saying the credit rating agency may “reconsider” Australia’s AAA rating unless substantial cuts are made to the deficit in coming years.

Australia’s central bank will publish the minutes from its last meeting at 1:30pm New Zealand time today where it is expected to reiterate interest rates will remain on hold. RBA assistant governor, financial markets, Guy Debelle is also scheduled to address a business lunch.

The kiwi fell to 62.88 euro cents from 63 cents yesterday and edged lower to 51.25 British pence from 51.32 pence. The trade-weighted index weakened to 80.17 from 80.27 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news