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

 

NZ dollar drops to new 5-month low

NZ dollar drops to new 5-month low as policy uncertainty weighs on investors

By Paul McBeth

Oct. 25 (BusinessDesk) - The New Zealand dollar extended its decline, falling to a fresh five-month low, as the lack of hard policy in governance agreements between the Labour, NZ First and Green parties continued to unnerve markets.

The kiwi fell as low as 68.84 US cents and traded at 69.02 cents as at 8am in Wellington from 69.44 cents yesterday. The trade-weighted index dropped to 72.95 from 73.27 yesterday and is at an 18-month low.

Since NZ First leader Winston Peters declared his support for a Labour-led government, the local currency has dropped 2.7 percent against the greenback as investors weigh up the outlook for the domestic economy under a new administration. The release of the NZ First coalition agreement and confidence and supply deal with the Greens didn't quell concerns over the proposed policy direction with a lack of detail in the short documents. Prime Minister-elect Jacinda Ardern will deliver a speech to the Council of Trade Unions today after announcing the make-up of her ministry.

"The document was surprisingly vague and didn’t reveal anything new," Bank of New Zealand currency strategist Jason Wong said in a note. "The information vacuum was probably the main reason for the fall in the NZD, with the level of uncertainty about the outlook likely to remain heightened for longer."

The kiwi fell to a 19-month low against its trans-Tasman counterpart, trading at 88.57 Australian cents from 88.78 cents yesterday. Australian inflation data today is expected to show an accelerating pace of rising consumer prices across the Tasman.

The local currency dropped to 4.5784 Chinese yuan from 4.6052 yuan as China's five-year Communist Party Congress drew to a close, where delegates voted to make 'Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era' a guiding principle for the party, putting President Xi on par with Mao Zedong and Deng Xiaoping.

The kiwi declined to 58.53 euro cents from 59.01 cents yesterday ahead of the European Central Bank meeting on Thursday. It traded at 52.54 British pence from 52.52 pence and fell to 78.38 yen from 78.69 yen yesterday.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra (And Dairy NZ)'s Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech