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

 


NZ dollar drops to lowest in more than two months

NZ dollar slips below 85 US cents to lowest in more than two months

By Tina Morrison

May 29 (BusinessDesk) - The New Zealand dollar fell below 85 US cents to its lowest in more than two months as sentiment waned following a drop in business confidence and a weaker forecast payout to dairy farmers from Fonterra Cooperative Group.

The kiwi touched 84.68 US cents early this morning, its lowest level since March 12 before the Reserve Bank began hiking interest on March 13. The local currency was trading at 84.95 US cents at 8am in Wellington, from 85.36 cents at 5pm yesterday. The trade-weighted index dropped to 79.44 from 79.71 yesterday.

The New Zealand dollar was the weakest performing major currency measured by Reuters. Sentiment toward the kiwi waned after the ANZ Business Outlook survey posted a third monthly drop in the face of rising interest rates, declining dairy prices and an elevated kiwi dollar. That followed Fonterra reducing its payout for the coming season and paring back its expectation for the season just ending. The kiwi faced a stronger US dollar overnight, with the greenback benefiting from weakness in the euro.

"The New Zealand dollar slipped in response to the (business confidence) survey's decline in momentum," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "The NZD/USD then came under further pressure overnight as the US dollar strengthened."

The New Zealand dollar slid to 91.95 Australian cents from 92.18 cents yesterday ahead of a report on Australian capital expenditure, which will be watched to see how the nation's economy is transitioning away from mining.

The kiwi touched a three-week low of 62.26 euro cents after a report showed German unemployment unexpectedly increased, bolstering expectations the European Central Bank may add further stimulus at its meeting next week. The local currency was trading at 62.49 euro cents at 8am from 62.64 cents at 5pm yesterday.

The New Zealand dollar edged up to 50.83 British pence from 50.78 pence yesterday and slipped to 86.51 yen from 87.03 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news