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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news