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

 

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Statistics: Record Net Annual Migration Levels Continue

In the February 2017 year, 71,300 more migrants arrived in New Zealand than left, Stats NZ said today. This equalled the previous annual record set in January 2017. More>>

South America Trade: New Zealand-Argentina Agricultural Agreement Signed

Primary Industries Minister Nathan Guy has signed an Agricultural Cooperation Arrangement with Argentina today, aimed at building closer relationships between the two countries. More>>

ALSO:

Statistics: Economic Growth Eases In December Quarter

GDP rose 0.4 percent in the December 2016 quarter, following an increase of 0.8 percent (revised) in the September 2016 quarter. “Growth in service industries was partly offset by weaker activity in primary industries also flowing through into manufacturing.” More>>

ALSO:

Trapping: Predator Free 2050 Holiday Parks Partnership

Conservation Minister Maggie Barry has welcomed a new predator-free initiative signed today which includes trapping in and around hundreds of holiday parks. More>>

ALSO:

Sure As Eggs: Commerce Commission Should Look Into 'Free Range' Egg Labelling

Green Party MP Mojo Mathers has written to the Commerce Commission asking it to inquire into the alleged mislabelling of eggs laid in cages as “free-range”, the Green Party said today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news