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

 


NZ dollar little changed ahead of Fed meeting

NZ dollar little changed ahead of Fed meeting, heavy US data flow

By Paul McBeth

July 28 (BusinessDesk) - The New Zealand dollar was little changed from the New York close as investors prepare for a heavy news flow from the US, including the Federal Reserve's latest policy review, an economic growth reading, capped off with employment figures at the end of the week.

The kiwi traded at 85.63 US cents at 8am from 85.51 cents on Friday in New York and 85.73 cents at 5pm in Wellington. The trade-weighted index was 79.90 from 79.94 at the New York close.

The US dollar index, a measure of the greenback against a basket of currencies, climbed to a four month high as traders focus on US news this week, which includes the Federal Open Market Committee meeting, which is expected to continue the move away from extraordinary policy, the first reading of second-quarter US gross domestic product, manufacturing and non-farm payrolls for July.

Investors are anticipating the data will continue to show signs of an improving economy, which will encourage the Fed to start lifting interest rates from zero, which would increase the attraction of the greenback.

"Data due this week will determine whether or not this strength is justified, with the calendar packed with top-tier US releases," Bank of New Zealand currency strategist Raiko Shareef said in a note.

The local currency sank 1.7 percent last week after the Reserve Bank of New Zealand talked up the chance of intervening in foreign exchange markets, calling its strength "unjustified", which was seen as an explicit reference to its intervention policy.

BNZ's Shareef said the market is closely watching for signs of an intervention, and the Reserve Bank's June foreign exchange statistics will be released on Wednesday.

"We remain on the sceptical side of the debate, given that action to weaken the NZD would be inflationary, and run contrary to the current stance of monetary policy (disinflationary)," he said.

The local currency traded at 87.13 yen at 8am in Wellington from 87.07 yen on Friday in New York, and edged up to 91.09 Australian cents from 90.99 cents. It was little changed at 63.73 euro cents from 63.65 cents last week, and traded at 50.43 British pence from 50.37 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news