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


NZ dollar falls as investors see higher US interest rates

NZ dollar falls as investors see higher US interest rates on track after Fed delay

By Paul McBeth

Sept. 22 (BusinessDesk) - The New Zealand dollar fell as investors still see the Federal Reserve hiking interest rates from the near-zero rate they've been at for seven years after the world's biggest central bank held off raising rates last week.

The kiwi traded at 63.14 US cents at 5pm in Wellington from 63.21 cents at 8am, down from 63.57 cents yesterday. The trade-weighted index declined to 68.43 from 68.61 yesterday.

The dollar index, a measure of the greenback against a basket of currencies, rallied during New York trading after Atlanta Federal Reserve president Dennis Lockhart joined the growing number of central bank officials expecting a rate hike later this year. Investors have been weighing up whether the Fed will refrain from raising interest rates this year after staying on hold last week, citing global growth concerns.

"The market's looking through the weakness on Friday and normalisation is still coming, and that was good cause for US dollar to be lifted," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. "The kiwi is in a bit of a consolidating pattern at the moment - anywhere near 62 (US cents) seems to be a short-term purchasing opportunity, and anywhere near 64 a short-term selling opportunity."

Investors will be watching a Chinese gauge of manufacturing tomorrow to assess the strength of the world's second-biggest economy, which has been weighing on the global outlook in recent weeks. The kiwi declined to 4.0233 Chinese yuan from 4.0439 yuan yesterday.

The local currency was little changed at 88.57 Australian cents from 88.60 cents yesterday after Bureau of Statistics figures showed house price growth in Australia accelerated in the three months ended June 30, with Sydney and Melbourne driving the gains.

The kiwi gained to 56.38 euro cents from 56.15 cents yesterday, and slipped to 40.70 British pence from 40.89 pence. It was little changed at 76.05 yen from 76.14 yen yesterday.

New Zealand's two-year swap rate rose 2 basis points to 2.7 percent, the five-year swap gained 3 basis points to 3.07 percent, and the 10-year swap increased 3 basis points to 3.59 percent.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Energy Resources Aotearoa: New Law On Decommissioning Could Be Costly Overkill
A new law on decommissioning oil and gas fields passed by Parliament today has good intentions but is overkill, according to Energy Resources Aotearoa. "We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do," says chief executive John Carnegie... More>>

Commerce Commission: News Publishers’ Association Seeks Authorisation To Engage In Collective Bargaining

News Publishers’ Association of New Zealand Incorporated seeks authorisation and provisional authorisation to engage in collective bargaining with Facebook and Google. The Commerce Commission has received applications from News Publishers’ Association of New Zealand Incorporated (NPA) seeking authorisation and provisional authorisation on behalf of itself... More>>

Reserve Bank: MPC Continues To Reduce Monetary Stimulus
The Monetary Policy Committee agreed to raise the Official Cash Rate (OCR) to 0.75 per cent. The Committee agreed it remains appropriate to continue reducing monetary stimulus so as to maintain price stability and support maximum sustainable employment... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>

REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>

BNZ: Auckland Retail Card Spending Bounces Back In Step Two
Bank of New Zealand (BNZ) card spending data released today shows one week of retail therapy at Alert Level 3 Step 2 has been enough to raise card spending in Auckland to levels greater than before the Delta lockdown... More>>