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

 


NZ dollar slips below 87 US cents as US dollar rebounds

NZ dollar slips below 87 US cents as US dollar rebounds

By Tina Morrison

June 23 (BusinessDesk) - The New Zealand dollar slipped from its recent highs above 87 US cents as the US dollar rebounded during the weekend.

The kiwi softened to 86.93 US cents at 8am in Wellington, from 86.96 cents at the New York close and 87.20 cents in Wellington on Friday. The trade-weighted index edged lower to 81 from 81.04 on Friday.

The US dollar regained some ground following its slide after the Federal Reserve last week cut its forecast for US economic growth and lowered its projections for long-term interest rates, pushing New Zealand's trade-weighted currency index to a new record. Still, the kiwi is likely to remain supported as investors are drawn to the yield advantage offered by the nation's higher interest rates, analysts said.

The kiwi weakened "in response to the stronger US dollar over the weekend," said Peter Cavanaugh, client advisor at Bancorp Treasury Services. "It's a bit of a correction from the US dollar weakness after the Fed meeting. It's difficult to see it falling away."

Today, traders will be eyeing May migration data which is expected to continue to show fewer New Zealanders leaving and more returning from overseas, helping drive economic growth. The report will be released at 10:45am, while data on May credit card spending is published at 3pm.

Strong migration data was a key reason cited by the Reserve Bank this month for sticking to its plan to keep hiking interest rates. The bank has increased the benchmark rate three times so far this year.

Traders will also be keeping an eye on tensions in Iraq, where a flare up could cause a "flight to safety" in currency markets, Bancorp's Cavanaugh said. Safe haven buying usually supports stable currencies such as the yen and the Swiss franc as investors exit higher yielding currencies such as the kiwi.

China's flash HSBC PMI manufacturing data for May will be watched this afternoon for signs of how Asia's largest economy is tracking. The reading is expected to show a slight improvement to 49.7 from 49.4 last month. Eurozone and US PMIs are released tonight.

The New Zealand dollar was little changed at 51.07 British pence from 51.13 pence on Friday, at 63.97 euro cents from 63.98 cents, unchanged at 92.63 Australian cents and edged lower to 88.74 yen from 88.81 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news