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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news