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

 


NZ dollar weakens as US interest rates seen rising

NZ dollar weakens on speculation US interest rates may rise earlier than forecast

By Tina Morrison

June 10 (BusinessDesk) - The New Zealand dollar weakened on the suggestion US interest rates may rise sooner than previously expected, boosting demand for the greenback.

The kiwi slipped to 84.88 US cents at 8am from 85.13 cents at 5pm yesterday. The trade-weighted index dropped to 79.19 from 79.36 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, rose after St. Louis Federal Reserve Bank president James Bullard said if the US economy continues to improve at its current pace, sentiment will likely move to an earlier rate hike. Bullard, speaking to reporters following a speech to the Tennessee Bankers Association, said he currently forecasts the first rate hike to come in the first quarter of 2015 but he may bring that expectation forward as he prepares his June contribution for the Fed. He is not a voter on the Federal Reserve Open Market Committee this year.

The kiwi weakened because of "the Bullard comments which are talking about higher US rates sooner rather than later," said Tim Kelleher, head of institutional FX sales New Zealand for ASB Bank. "The central bank may raise rates sooner than many now think is what he said, which is US dollar positive."

In New Zealand today, economists will be eyeing the quarterly manufacturing sales data scheduled for release at 10:45am as they prepare their forecasts for first quarter GDP.

In Australia, the focus will be on the latest NAB business confidence survey due at 1:30pm New Zealand time. Australia also has reports on job advertisements and home loans.

Traders will also be watching for Chinese data on inflation and the producers price index as they gauge the strength of New Zealand's largest trading partner. Overnight, the People's Bank of China said it would reduce the amount of cash reserves that must be held by banks that mainly lend to small business and rural borrowers.

The New Zealand dollar fell to 90.64 Australian cents from 91.02 cents yesterday.

The kiwi was little changed at 62.42 euro cents from 62.40 cents yesterday and edged lower to 50.51 British pence from 50.65 pence ahead of data on UK industrial production. The local currency slipped to 86.98 yen from 87.29 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news