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

 


NZ dollar holds near 6-month lows as USD revives

NZ dollar holds near 6-month lows, may fall further as greenback revives

By Jonathan Underhill

Aug. 26 (BusinessDesk) - The New Zealand dollar held near six-month lows on expectations the greenback will extend gains given the prospect of US interest rate hikes next year.

The kiwi traded at 83.40 US cents at 5pm from 83.45 cents late yesterday. It dropped as low as 83.08 cents after government figures showed the trade deficit in July was a wider-than-expected $692 million. The trade-weighted index was at 78.74 from 78.78 yesterday.

The US dollar index, which measures the greenback against a basket of major currencies, has risen to its highest levels in 11 months as traders and investors speculate when the Federal Reserve will begin raising its benchmark interest rate from near zero. By contrast, the Reserve Bank of New Zealand is seen pausing its tightening cycle through the end of 2014 and traders are also pondering the uncertainty of next month's election.

"The Fed is going to raise rates - it's just a matter of when," said Michael Johnston, senior trader at HiFX. "We still think sell the kiwi on the rallies. We've seen the highs. New Zealand data has been a bit more mixed of late and we've got an election coming up."

The New Zealand dollar rose to 89.73 Australian cents from 89.55 cents yesterday and traded at 63.17 euro cents from 63.18 cents. It was at 50.26 British pence from 50.37 pence and fell to 86.62 yen from 86.97 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news