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

 


NZ dollar touches fresh three-year high

NZ dollar touches fresh three-year high as Fed minutes fail to signal interest rate rises

By Tina Morrison

July 10 (BusinessDesk) - The New Zealand dollar touched a fresh three-year high and is edging closer to its a post-float record after some traders were disappointed the Federal Reserve's June meeting minutes didn't signal the potential for US interest rate hikes.

The kiwi touched 88.29 US cents, its highest since August 2011 when it reached a post-float record of 88.40 cents. The local currency was trading at 88.20 US cents at 8am in Wellington, from 87.93 cents at 5pm yesterday. The trade-weighted index rose to 81.89 from 81.72 yesterday, after touching a record 81.92.

The US dollar weakened after the release of the Federal Reserve meeting minutes at 6am New Zealand time failed to provide markets with any new information. Some traders had been expecting stronger employment data pointing to a revival in the world's largest economy could have prompted the Fed to mull hiking interest rates sooner.

"The minutes themselves were not insightful, there was nothing significantly new in them but the market immediately responded, pushing down interest rates in the US, pushing down the US dollar and therefore pushing up most currencies against the US," said Imre Speizer, senior market strategist at Westpac Banking Corp in New Zealand. "It suggests the market might have positioned itself for a hawkish report, didn't get a hawkish report and then quickly had to take back their speculative positions."

Westpac's Speizer said the kiwi has a chance of making a new post-float record high today but would need a catalyst such as this afternoon's Australia's employment report or Chinese trade data.

Also today, the BNZ-Business NZ Performance of Manufacturing Index is scheduled for release at 10:30am.

The New Zealand dollar increased to 64.62 euro cents from 64.56 cents yesterday after European Central Bank president Mario Draghi reiterated in a speech that the bank is ready use "unconventional instruments" if needed.

The kiwi gained to 51.40 British pence from 51.32 pence yesterday, rose to 89.60 yen from 89.34 yen and advanced to 93.65 Australian cents from 93.57 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news