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


NZ dollar heads for 0.8% weekly fall on risk aversion

NZ dollar heads for 0.8% weekly fall as Iraq, Ukraine sap risk appetite

By Paul McBeth

Aug. 8 (BusinessDesk) - The New Zealand dollar is heading for a 0.8 percent weekly decline as heightened geo-political tensions in Iraq and the Ukraine sap investors' appetite for risk-sensitive assets.

The kiwi fell to 84.45 US cents at 5pm in Wellington from 85.16 cents on Friday in New York last week. It traded at 84.84 cents at 8am and 84.56 cents yesterday. The trade-weighted index declined to 79.26 from 79.39 yesterday, and is heading for a 0.5 percent weekly fall from 79.67.

A BusinessDesk survey of eight traders and strategists on Monday predicted the kiwi would probably trade between 84 US cents and 86.05 cents this week. Four picked the kiwi to remain largely unchanged this week, and four expected it to gain.

Demand for the local currency was sapped after dairy prices fell to a two-year low, and the kiwi has remained under pressure with escalating geo-political tensions. US President Barack Obama today approved airstrikes against militants in Iraq if they threatened US personnel, while a build-up of Russian troops on the Ukraine border already had investors nervous.

"The kiwi's falling on the back of risk aversion returning, not just dairy prices," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "It's just a matter of time before the 84 US cents level breaks down."

Chinese trade figures beat expectations today, with a record trade surplus of US$47.3 billion in the year ended July 31 on a 15 percent increase in exports. Traders will be keeping tabs on Chinese inflation figures over the weekend.

The kiwi dropped to 85.93 yen at 5pm in Wellington from 86.47 yen yesterday after the Bank of Japan retained its record stimulus measures to boost the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.

The local currency traded at 91.34 Australian cents at 5pm in Wellington from 91.26 cents yesterday after the Reserve Bank of Australia lowered its growth and inflation forecasts, a day after government figures showed the highest unemployment rate in 12 years

The kiwi traded at 63.22 euro cents from 63.19 cents yesterday, and was little changed at 50.23 British pence from 50.18 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news