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

 


NZ dollar falls as US dollar rises after upbeat FOMC minutes

NZ dollar declines on US dollar strength after upbeat FOMC minutes

By Tina Morrison

Aug. 21 (BusinessDesk) - The New Zealand dollar declined as the US dollar strengthened after minutes to the Federal Reserve's last meeting were more upbeat than expected about the world's largest economy.

The kiwi fell to 83.67 US cents at 8am in Wellington, from 83.88 cents at 5pm yesterday. The trade-weighted index edged lower to 78.91 from 78.93 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, rose to its highest in almost a year after minutes from the Federal Reserve Open Market Committee showed policymakers were less concerned about low inflation and more optimistic about a pickup in the labour market, suggesting they may hasten the removal of monetary policy stimulus. Fed officials have previously indicated interest rates would increase some time next year, after holding the rate near zero since December 2008.

"Kiwi is lower as are all major currencies against the US dollar," said Imre Speizer, senior market strategist at Westpac Banking Corp. in New Zealand. "The FOMC minutes were a bit more hawkish than expected, they saw an improving labour market and improving economic growth and expected it to continue going forward so US interest rates rose, the US dollar rose, and everything fell against it."

The New Zealand dollar will probably be capped at 84.15 US cents and continue to fall in the coming days towards 82 cents, Speizer said.

Today, traders will be eyeing New Zealand migration data for July as strong net migration is one of the factors cited by the Reserve Bank in raising interest rates. The latest ANZ-Roy Morgan consumer confidence report is also scheduled for release today, along with credit card billings for July.

The HSBC China Manufacturing PMI for August will also be watched for signs of how Asia's largest economy is tracking.

Fed Chair Janet Yellen is scheduled to speak on labour markets tomorrow at the annual economic symposium at Jackson Hole, Wyoming.

The New Zealand dollar slipped to 90.09 Australian cents from 90.28 cents yesterday, edged lower to 50.44 British pence from 50.51 pence, advanced to 63.11 euro cents from 63.03 cents and gained to 86.86 yen from 86.50 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news