Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

NZ dollar gains on threat of US govt shutdown

NZ dollar gains as threat of US govt shutdown weighs on greenback

By Paul McBeth

Jan. 19 (BusinessDesk) - The New Zealand dollar rose back above 73 US cents as the looming deadline for US policymakers to extend funding for the federal government to avoid a shutdown weighed on the greenback and pushed up US interest rates.

The kiwi gained to 73.08 US cents as at 8.30am from 72.60 cents yesterday. The trade-weighted index advanced to 75.15 from 74.89 yesterday.

US legislators have a Jan. 19 deadline to extend funding measures to avoid freezing federal government functions and need buy-in from the Democrat opposition to pass legislation in the Senate, where the ruling Republican party holds a smaller majority. That uncertainty has weighed on the greenback and pushed the yield on US 10-year Treasuries to 2.61 percent, the highest they've been since March last year.

"Focus is currently on Washington where a US government shutdown deadline looms this weekend unless a stopgap funding bill is agreed," Bank of New Zealand currency strategist Jason Wong said in a note. "The lack of any positive news on the threat of a US government shutdown has since seen broadly based weakness in the USD and the NZD push back up through the US$0.73 mark."

Local data today include the Business New Zealand-BNZ performance of manufacturing index, with investors focused on whether the slump in business confidence has stifled industrial production.

The local currency edged up to 91.38 Australian cents from 91.26 cents yesterday and gained to 4.6893 Chinese yuan from 4.6739 yuan. It traded at 81.13 yen from 80.91 yen yesterday and was little changed at 59.63 euro cents from 59.60 cents. the kiwi increased to 52.69 British pence from 52.58 pence yesterday.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.