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

 


NZ dollar falls to 3-month low as investors trim rate bets

NZ dollar falls to 3-month low as investors pull back bets on rate hikes

By Tina Morrison

June 3 (BusinessDesk) - The New Zealand dollar fell to a three-month low as investors pulled back their expectations for future interest rate increases, decreasing the lure of the local currency.

The kiwi touched 84.37 US cents, and was trading at 84.50 cents at 8am in Wellington from 84.68 cents at 5pm yesterday when local banks were closed for the Queens Birthday public holiday.

The New Zealand dollar has declined 2.6 percent the past month as investors pared pack their expectations for the pace of interest rate increases on concern that falling commodity prices may dent economic growth after Fonterra Cooperative Group reduced its forecast payout to dairy farmers. Reserve Bank governor Graeme Wheeler has said he may intervene to sell the local currency should it fail to reflect softer commodity prices.

"The New Zealand dollar has come off the boil," said Peter Cavanaugh, client advisor at Bancorp Treasury Services. "The markets are digesting comments from the Reserve Bank and even though they expect them to raise the cash rate next week, they will probably tone down the rhetoric and slow down the path for rate rises. The market in March was confidently predicting a rate rise in July and now you would have to say that's much less likely."

The Reserve Bank is expected to increase the official cash rate a quarter point at its June 12 meeting. Traders have pulled back their expectations for interest rate hikes over the coming year to 75 basis points from 92 points a month ago, according to the Overnight Swap Curve.

Today, the focus will be on first quarter terms of trade data scheduled for release at 10:45am.

The New Zealand dollar slipped to 91.36 Australian cents from 91.45 cents yesterday ahead of the Australian Reserve Bank decision on interest rates this afternoon.

The kiwi was little changed at 62.14 euro cents from 62.13 cents yesterday, edged lower to 50.44 British pence from 50.57 pence and advanced to 86.54 yen from 86.38 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news