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

 


NZ dollar gains against pound, euro; growth concerns weigh

NZ dollar gains against pound, euro, as growth concerns weigh

By Tina Morrison

Aug. 7 (BusinessDesk) - The New Zealand dollar rose against the British pound and the euro ahead of central bank meetings today amid concerns about faltering economic growth in the region.

The kiwi advanced to 50.29 British pence at 8am in Wellington, from 49.96 pence at 5pm yesterday and increased to 63.33 euro cents from 63.05 cents. The local currency gained to 84.70 US cents from 84.28 cents yesterday.

The pound weakened ahead of the Bank of England meeting today after data showed industrial and manufacturing output grew less than expected in June, cooling expectations the bank will raise interest rates this year. The euro dropped after Italy said it unexpectedly fell into recession again in the second quarter and a report showed German industrial orders slumped at their steepest rate in almost three years in June. Also weighing on the currencies is investor caution over the conflict in Ukraine.

Both the euro and the pound "continued to sink", Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management in New York, said in a note.

"Overall Eurozone growth may be moving back to zero with periphery economies such as Italy already back in recession," he said. "If Germany, which is the locomotive of the region, is unable to revive demand in the foreseeable future, the ECB may be facing a much greater policy challenge in the second half of this year and may be forced to expand its extraordinary measures far beyond its initial intent."

Meantime, "the prospects for an early Bank of England rate hike grow dimmer and dimmer with UK growth appearing to have peaked earlier this year," Schlossberg said. "With demand in Europe slowing down significantly and financial markets looking like they are about to correct, it is difficult to see how the UK economy can recover its growth momentum from the start of this year."

Neither the BoE nor the ECB are expected to change their benchmark interest rates from record lows at today's meetings, however traders will be watching ECB president Mario Draghi's media conference for hints on future policy.

In New Zealand today, state valuer Quotable Value is scheduled to release its latest house price data at midday.

The New Zealand dollar was little changed at 90.61 Australian cents from 90.58 cents at 5pm yesterday ahead of scheduled releases today on Australian's labour market, tourist arrivals and construction.

The kiwi was little changed at 86.48 yen from 86.44 yen yesterday ahead of the Bank of Japan meeting tomorrow. The trade-weighted index advanced to 79.32 from 79.07 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news