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

 


NZ dollar heads for 1.3% weekly fall as greenback firms

NZ dollar heads for 1.3% weekly fall as greenback firms, US jobs data looms

By Paul McBeth

Sept. 5 (BusinessDesk) - The New Zealand dollar is heading for a 1.3 percent weekly decline against the greenback as a string of US economic data firms up support for the world's reserve currency on expectations the Federal Reserve will start hiking interest rates early, and as US employment figures loom.

The kiwi fell to 82.84 US cents at 5pm in Wellington from 83.97 cents on Friday in New York last week, and was down from 83.11 cents at 8am and 83.20 cents yesterday. The trade-weighted index was little changed at 78.77 from 78.67 yesterday, and is heading for a 0.4 percent weekly fall from 79.07 last week.

A BusinessDesk survey of 11 currency traders and strategists on Monday predicted the kiwi would trade between 82.20 US cents and 84.50 cents this week. Nine expected the currency to decline, and two said it would probably remain broadly unchanged.

The US Dollar Index, a measure of the greenback against a basket of currencies, rose to its highest since July last year as recent economic data points to a stronger recovery, heightening expectations the Fed will start raising interest rates earlier and faster than previously thought. Meantime, the kiwi came under pressure as falling dairy prices raised questions about the strength of the local economy. Traders are waiting for US non-farm payrolls data on Friday in Washington for another gauge on the world's biggest economy, with analysts forecasting another 225,000 jobs were added in the month.

"If we get a good number, that will affirm the US recovery and strength in the US dollar," said Michael Johnston, senior dealer at HiFX in Auckland. "The kiwi's going to remain a bit volatile, with the bias still to the downside."

HiFX's Johnston said he wouldn't be surprised if the kiwi heads toward 80 US cents towards the end of the year.

The local currency touched a six-week high against the euro after the European Central Bank unexpectedly cut the refinancing rate and deposit rate by 10 basis points to 0.05 percent and minus 0.2 percent respectively, and president Mario Draghi also announced plans to start buying at least 700 million euros of asset-backed securities to invigorate a lacklustre European economy and stir inflation in the euro-zone. The kiwi traded at 64.05 euro cents at 5pm in Wellington from 63.27 cents yesterday.

The local currency was almost unchanged at 87.22 yen from 87.21 yen yesterday, and fell to 88.66 Australian cents from 89.01 cents. It rose to 50.78 British pence from 50.55 pence, after the Bank of England yesterday kept monetary policy unchanged.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news