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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


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>>


International 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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news