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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news