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

 


NZ dollar falls as Yellen helps lift greenback

NZ dollar falls as Yellen helps lift greenback, amid intervention talk

By Jonathan Underhill

Aug. 25 (BusinessDesk) - The New Zealand dollar fell after Federal Reserve chair Janet Yellen gave a more hawkish view of the US economy and tensions rose over Ukraine, sapping risk appetite. The kiwi extended its slide amid talk the central bank may have intervened in the market.

The kiwi fell to 83.45 US cents at 5pm in Wellington from 84.07 cents in late New York trading on Friday. It earlier dropped as low as 83.41 cents as traders speculated the Reserve Bank may have been selling. The trade-weighted index fell to 78.78 from 79.18 on Friday.

Yellen said in a speech at a central bank retreat at Jackson Hole, Wyoming, that while there was still slack in the US labour market, a return to higher interest rates could come sooner than thought and then at a quicker pace. Meantime, a Russian supply convoy pushed into rebel-held eastern Ukraine even after the Red Cross pulled out of a joint effort and Nato chiefs said the convoy may contain military equipment.

"The bigger story here is that the US dollar is in a very powerful uptrend," said Imre Speizer, strategist at Westpac Banking Corp. "We're at the beginning of a very long move higher in the US dollar. The kiwi might fall further because it is in a bit of an economic soft patch."

Russia's forays into Ukraine had stoked risk aversion, weighing on growth-linked currencies such as the kiwi, Speizer said.

The kiwi dropped sharply during local trading as some traders speculated the Reserve Bank had intervened in the market, having previously flagged its willingness to do so. Traders speculated today's sharp drop could have been caused by the central bank taking advantage of thin liquidity on a Monday morning, although, the currency's move could also be attributed to a large options or hedging transaction by a trading bank, they said.

The Reserve Bank, which declined to comment, releases details of its July foreign exchange transactions later this week and this month's data won't be released until September.

The New Zealand dollar traded at 63.19 euro cents from 63.29 cents on Friday. It fell to 86.97 yen from 87.25 yen and dropped to 89.56 Australian cents from 90.24 cents. It declined to 50.39 British pence from 50.70 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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