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

 


NZ dollar weakens as greenback buoyed by economic optimism

NZ dollar weakens as greenback buoyed by economic optimism

By Tina Morrison

May. 26 (BusinessDesk) - The New Zealand dollar fell as positive US economic data strengthened the greenback and some investors reduced their holdings of the local currency on concern about falling commodity prices.

The kiwi slipped to 85.36 US cents at 8am in Wellington, from 85.39 cents at the New York close and 85.61 cents at 5pm in Wellington on Friday. The trade-weighted index dropped to 79.75 from 79.92 on Friday.

The US dollar index, which measures the greenback against a basket of currencies, strengthened after a report showed new home sales in April rose more than expected and the month earlier figures were revised higher, buoying optimism about a revival in the world's largest economy following weaker data in the first quarter due to harsh winter weather. Conversely, some investors pulled back their expectations for a higher kiwi on concern the elevated level of the local currency doesn't reflect a decline in dairy commodity prices.

"We are overdue for some continued US dollar strength. The US data generally has been quite good to counteract the weak data in the first quarter and we should have some exceptionally strong data going forward," said Martin Rudings, senior adviser at OMF. "While we have been attractive to investors offshore because of the high yield, I think the uncertainty about commodity prices is starting to filter through. A lot of offshore people are very long New Zealand dollars and I think as soon as there is some doubt, they start to scramble out. Dairy prices have probably got a little bit further downside in them."

The kiwi may trade in a tight range of 85.10 US cents to 85.70 cents today, Rudings said. US financial markets are closed for the Memorial Day holiday today while the UK has a bank holiday.

In New Zealand today, traders will be eyeing data on the latest trade balance, scheduled for release at 10:45am.

The New Zealand dollar slipped to 92.40 Australian cents at 8am from 92.63 cents at 5pm on Friday, weakened to 62.64 euro cents from 62.73 cents, edged lower to 50.69 British pence from 50.75 pence and slipped to 87.08 yen from 87.13 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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