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

 


NZ dollar weaker amid heightened Middle East tensions

NZ dollar weaker amid heightened Middle East tensions; US data looms

By Suze Metherell

June 25 (BusinessDesk) - The New Zealand dollar held at overnight lows in local trading after geopolitical tensions in the Middle East sapped demand for risk-sensitive assets, and ahead of US economic data.

The kiwi was almost unchanged at 86.80 US cents at 5pm in Wellington, from 86.82 cents at 8am, and down 87.19 cents yesterday. The trade-weighted index dropped to 80.82 from 81.08 at 5pm yesterday.

Stocks fell across Asia, following Wall Street's lead, as violence in Iraq escalated into cross-border hostilities with Syria, fuelling investors' fear about the stability of the Middle East. Meantime, traders are preparing for the third reading of US gross domestic product data, which is expected to show the world's biggest economy shrank in the first quarter, while durable goods orders for May is estimated to have fallen for a second month.

"There are still some geopolitical fears and we do see some risk coming off, we'll be looking to the stock markets tonight to see if we get a continuation in selling there," said Stuart Ive, senior dealer, foreign exchange at OMF. "If we do see that we could see some risk coming off as well which means the dollar could test lower levels."

OMF's Ive said the US GDP figure will be "viewed as historical data," and markets will be closely watching the durable goods report.

The New Zealand dollar rose to 92.68 Australian cents at 5pm from 92.50 cents yesterday. Reserve Bank of Australia deputy governor Philip Lowe spoke as part of a panel in Melbourne today on global challenges for G20 group of finance ministers and central bankers from the world's 20 biggest economies.

The kiwi fell to 63.76 euro cents from 64.14 yesterday, after the IFO German business confidence report fell to its lowest level this year.

The local currency edged down to 51.12 British pence from 51.22 pence yesterday, and dropped to 88.42 yen from 88.88 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news