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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news