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

 


NZ dollar slips back to about 70 US cents

Monday 20 March 2017 08:31 AM

NZ dollar slips back to about 70 US cents in week where RBNZ expected to reiterate rates on hold

By Jonathan Underhill

March 20 (BusinessDesk) - The New Zealand dollar eased back to about 70 US cents at the start of a week in which the Reserve Bank is expected to reiterate it won't raise interest rates any time soon, with the on-hold view reinforced by weaker growth figures.

The kiwi dollar traded at 70 US cents as at 8am in Wellington from 70.17 cents in New York on Friday and 69.90 cents in Wellington at the end of last week. The trade-weighted index was at 76.18 from 76.20 in New York.

The Reserve Bank is scheduled to release its latest review of interest rates on Thursday, including its one-page assessment of monetary conditions. The bank projected no change in the official cash rate at a record low 1.75 percent until late 2019 in its Feb. 9 monetary policy statement. Last week figures showed the New Zealand economy slowed to a 0.4 percent pace in the fourth quarter, less than half the 1 percent rate the central bank had forecast, while the TWI is below the 79 average level it expected for the first quarter, reducing the kiwi's deflationary impact.

"In what is looking to be a quiet week ahead on the global economic calendar, the focus for the market will turn to Thursday’s RBNZ OCR review," said Jason Wong, currency strategist at Bank of New Zealand, in a note. "That event itself is unlikely to see much change in the RBNZ’s policy tone, but until then tight ranges could well prevail anyway. We see the balance of risk tilted towards the NZD making up a little more ground over coming trading sessions."

Today, traders will be watching for the BNZ-BusinessNZ PSI for February for a reading on the services sector after its manufacturing (PMI) counterpart last week showed a pickup in activity.

The latest GlobalDairyTrade auction, out this week, will show whether a pickup in supplies of dairy products on global markets will continue to weigh on prices after whole milk powder tumbled 12.4 percent in the last auction two weeks ago.

The kiwi fell to 56.50 British pence from 56.63 pence in New York on Friday and traded at 65.21 euro cents from 65.31 cents. It edged up to 91.09 Australian cents from 90.96 cents, fell to 4.8300 yuan from 4.8397 yuan and dropped to 78.83 yen from 79.05 yen.

(BusinessDesk)

ends

© 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:

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:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news