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

 

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