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

 

NZ dollar extends fall as Syrian conflict erodes confidence

NZ dollar extends decline as Syrian conflict erodes investors’ risk appetite

By Paul McBeth

Aug. 28 (BusinessDesk) - The New Zealand dollar extended its decline in local trading as the growing likelihood of a Western military strike on Syria erodes investors’ appetite for higher yielding, or riskier, assets.

The kiwi dollar fell to 77.67 US cents at 5pm in Wellington from 77.98 cents at 8am and 78.13 cents yesterday. The trade-weighted index fell to a two-month low 73.08, trading at 73.33 at 5pm from 73.79 yesterday.

Oil and precious metal prices rallied as investors flocked to safe haven assets amid heightening tensions in the Middle East. The US, UK and France look increasingly likely to approve a military strike on Syria in retaliation to the regime’s presumed use of chemical weapons on civilians.

That’s spooked financial markets around the world, and Asian stocks followed US and European bourses lower, as Australia’s S&P/ASX 200 index dropped 1.1 percent at 5pm in Wellington, Hong Kong’s Hang Seng declined 1.7 percent, and Japan’s Nikkei 225 index fell 2.3 percent.

“It’s all about Syria and the impending missile strike – that’s what’s really driving the market,” said Michael Johnston, senior dealer at HiFX in Auckland. “There’s a big uptick in risk aversion” which has sapped demand for the local currency, he said.

HiFX’s Johnston said the kiwi may trade between 77.25 US cents and 78.40 cents and he expects it to fall into the mid-76 US cents range.

The kiwi didn’t react to news New Zealand government officials found no signs of botulism-causing bacteria in the Fonterra Cooperative Group whey protein concentrate, rather it was a non-toxic variety.

The local currency dropped to 75.33 yen from 76.76 yen yesterday, and was little changed at 87.07 Australian cents from 87.03 cents. It declined to 58.03 euro cents from 58.41 cents, and decreased to 49.99 British pence from 50.15 pence.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: