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

 

NZ dollar falls after second fruit fly discovered

NZ dollar falls after second fruit fly discovered

By Jenny Ruth

Feb. 19 (BusinessDesk) - An already weak New Zealand dollar fell further on the news that a second fruit fly has been found in Auckland. It is of a different species to the adult male Queensland fly caught last week.

The kiwi had already been dragged down after gloomy comments from the Reserve Bank of Australia about the housing market.

It was trading at 68.28 US cents at 5pm in Wellington from 68.93 at 8am. The trade-weighted index was at 74.17 from 74.30.

“There’s been some news hitting the wires that they’ve found a second species of fruit fly in Auckland,” says Mitchell McIntyre, a dealer at XE.

New Zealand is officially otherwise free of fruit flies. Were the pest to become established here, it could devastate horticulture

The fly from the new species, a facialis fruit fly and native of Tonga, was found in Otara and formally identified on Monday.

Biosecurity Minister Damien O’Connor says the second find is disappointing and the government is committed to ensuring it doesn’t establish here.

“Getting rid of the fruit fly is New Zealand’s most well-oiled biosecurity response. We’ve been here several times before and each time we’ve successfully got rid of this horticultural pest,” O’Connor says.

The Ministry for Primary Industry has set 7,500 traps to catch any flies around Auckland.

McIntyre says the market had tried to rally earlier but the RBA’s gloomy comments hit the Australian dollar and dragged the kiwi down as well.



The RBA said the house price falls so far are large by historical standards but should have only a small economic impact.

However, if house prices were to fall much further, that could weaken consumption and GDP, making the situation a “key uncertainty” for monetary policy.

Like New Zealand’s Reserve Bank, the RBA has said the next move in interest rates could be either up or down, depending on how the risks play out.

The New Zealand dollar is trading at 95.99 Australian cents from 96.03, at 52.93 British pence from 52.97, at 60.44 euro cents from 60.56, at 75.42 yen from 75.74 and 4.6252 Chinese yuan from 4.6337.

The two-year swap rate is at 1.9109 percent from 1.9117 on Monday; the 10-year swap rate is at 2.5100 percent from 2.4950.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax Bill Passes, Drops: “An End To Unnecessary Secondary Tax”

“The changes mean Inland Revenue will more closely monitor the tax paid by wage and salary earners through the year. If it appears the worker is being over taxed, Inland Revenue will suggest a more suitable PAYE tax code tailored to that worker.” More>>

ALSO:

Ethiopian Airline Crash: Boeing 737 Max Aircraft Operations Temporarily Suspended

New Zealand’s Civil Aviation Authority has suspended the operation of Boeing 737 MAX aircraft to or from New Zealand. Currently this affects only one operator, Fiji Airways. There are no other airlines that fly this aircraft type to New Zealand. More>>

ALSO:

Sorting Out DNA: Crime-Busting Software Wins Top Science Prize

Software developed in New Zealand that has contributed to identifying suspects in tens of thousands of criminal cases around the world has won the 2018 Prime Minister’s $500,000 Science Prize. More>>

ALSO:

In The High Court: IRD Wins Tax Avoidance Case

Inland Revenue has won a High Court case against Eric Watson’s Cullen Group over a nearly $52 million tax debt. More>>

ALSO:

Insurers Withdraw From Market: Plea For EQC Rethink

A consumer watchdog wants the government to rethink the Earthquake Commission (EQC) as more people are pushed out of getting property and contents insurance. More>>

ALSO:

Women's Day: New Zealand Rated Third Best In OECD For Working Women

New Zealand has been rated among the top countries in the world for working women. The Women in Work Index rated New Zealand third in the OECD and it was the only country outside Europe to make the top 10. More>>

ALSO: