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

 


NZ dollar heads for 0.9% weekly drop before Jackson Hole

NZ dollar heads for 0.9% weekly drop ahead of Jackson Hole symposium

By Paul McBeth

Aug. 22 (BusinessDesk) - The New Zealand dollar is heading for a 0.9 percent weekly decline as investors prepare for the central bankers' symposium in Jackson Hole, Wyoming, where Federal Reserve chair Janet Yellen will deliver a speech.

The kiwi fell to 84.09 US cents at 5pm in Wellington from 84.82 cents last Friday in New York. It traded at 84.03 cents at 8am, up from 83.57 cents yesterday. The trade-weighted index is heading for a 0.5 percent weekly decline to 79.18 from 79.61 last week. It was at 78.91 yesterday.

The US dollar index, a measure of the greenback against a basket of currencies, has drifted from its highest level in almost a year as traders prepare for Yellen's speech after minute to the Federal Open Market Committee's latest policy meeting raised the prospect of rising interest rates in the US. That comes as falling commodity prices and a pause in New Zealand's tightening monetary policy cycle dim the attraction of the kiwi, which has benefited from relatively high yields.

"Is she going to dial back on the hawkish script we saw in the FOMC minutes? That will be the question" said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "If Yellen signals that rates are going up, then it's 'come on (US) dollar' and the kiwi/US falls towards 83 (US cents)."

The local currency came under pressure this week as lower growth forecasts from the Treasury, reduced inflation expectations and falling consumer confidence sap expectations the Reserve Bank will hike interest rates again this year. Traders have priced in 42 basis points over increases to the official cash rate over the next 12 months, according to the Overnight Index Swap curve.

The kiwi was little changed at 90.23 Australian cents at 5pm in Wellington from 90.32 cents yesterday, and rose to 87.23 yen from 86.76 yen. It increased to 63.28 euro cents from 63.09 cents yesterday, and gained 50.70 British pence from 50.43 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news