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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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