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

 


NZ dollar weakens as Fed's Yellen less dovish than expected

NZ dollar weakens as Fed's Yellen less dovish than expected at Jackson Hole

By Tina Morrison

Aug. 25 (BusinessDesk) - The New Zealand dollar weakened on US dollar strength after Federal Reserve chair Janet Yellen was less dovish than expected in her speech to an annual gathering of world central bankers at Jackson Hole, Wyoming.

The kiwi slipped to 83.86 US cents at 8am in Wellington, from 84.07 cents at the New York close and 84.10 cents at 5pm in Wellington on Friday. The trade-weighted index was at 79.23 from 79.18 on Friday.

Yellen, one of the Fed policy makers considered less upbeat about the US economy, was more balanced than expected in her speech to central bankers at the weekend. While she reiterated her view that there is still significant slack in the US labour market, Yellen also said increases in the Federal funds rate target may come sooner than the Federal Reserve Open Market Committee currently expects and could then proceed at a more rapid pace.

"Her balanced approach turned out to be a relief for dollar bulls because it does not rule out the possibility of a less dovish view at next month's Fed meeting," Kathy Lien, managing director of foreign exchange strategy for BK Asset Management in New York, said in a note. "In a nutshell, investors bid up the dollar when they realised that Yellen said nothing to discourage the hawks."

The New Zealand dollar touched 63.62 euro cents over the weekend, its highest in more than a week, after European Central Bank president Mario Draghi told the Jackson Hole conference that the bank is ready to adjust monetary policy further to stimulate the region's economy. The kiwi was trading at 63.50 euro cents at 8am from 63.29 cents at 5pm Friday.

The kiwi touched a month-high 87.75 yen over the weekend, and was trading at 87.41 yen at 8am from 87.25 yen on Friday. The Bank of Japan will continue to maintain its current monetary policy stance in order to achieve its 2 percent inflation goal, but it won't hesitate to make adjustments to the policy if needed, governor Haruhiko Kuroda told reporters on the sidelines of the Jackson Hole gathering.

The New Zealand dollar edged lower to 90.18 Australian cents from 90.24 cents on Friday and was little changed at 50.68 British pence from 50.70 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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