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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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