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

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news