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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news