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

 

NZ dollar falls as Fed official Lockhart talks up rate hikes

NZ dollar falls as Fed official Lockhart talks up rate hikes this year

By Paul McBeth

Sept. 22 (BusinessDesk) - The New Zealand dollar fell as Federal Reserve official Dennis Lockhart talked up the chances of US rate hike coming this year, the third Fed official to support higher interest rates since last week's meeting, and stoking demand for the greenback.

The kiwi fell to 63.21 US cents at 8am in Wellington from 63.57 cents yesterday. The trade-weighted index slipped to 68.46 from 68.61 yesterday.

The US dollar index, a measure of the greenback against a basket of currencies, rallied after Atlanta Fed president Lockhart said he would have voted for a hike at last week's Federal Open Market Committee review if he was a member, saying "I am confident the much-used phrase 'later this year' is still operative," and that the delay was mostly influenced by heightened market volatility. Lockhart's comments echo other Fed officials over the weekend, who support raising interest rates.

"Markets reassessed their risk-off reaction to the Fed’s move to some degree last night," ANZ Bank New Zealand senior economist Sharon Zollner and senior FX strategist Sam Tuck said in a note. "Markets completed the reversal of the Fed reaction last night, with NZD/USD trading lower as markets took heed of Fed speakers – who talked of normalisation."

With no local data today, investors will be watching Australian house price figures and a consumer confidence survey. The kiwi was unchanged at 88.60 Australian cents.

The local currency rose to 56.46 euro cents from 56.15 cents yesterday after European Central Bank chief economist Peter Praet said the regional monetary authority is prepared to ramp up stimulus measures to get inflation near the bank's 2 percent target rate.

The kiwi edged down to 40.76 British pence from 40.89 pence yesterday ahead of a speech by Bank of England governor Mark Carney. It was unchanged at 76.14 yen, and declined to 4.0224 Chinese yuan from 4.0439 yuan yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>