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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news