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

 

Dollar falls as market wait to see who will govern

NZ dollar falls as markets wait to see which parties will govern

By Rebecca Howard

Oct. 18 (BusinessDesk) - The New Zealand dollar fell while remaining in a narrow trading range as the market waits to find out which parties will form the country's next government.

The kiwi dollar was trading at 71.59 US cents as at 5pm from 71.66 US cents as at 8am in Wellington, from 71.64 cents late yesterday. The trade-weighted index was at 75.37 from 75.39 yesterday.

The kiwi came under some pressure after the GDT price index fell 1 percent in the GlobalDairyTrade auction overnight, while whole milk powder declined 0.5 percent to US$3,014 a tonne, despite the futures pointing to an increase. It came under further pressure when Federal Reserve Bank of Philadelphia President Patrick Harker said Tuesday he thinks one more increase in interest rates is appropriate this year.

However, it remained largely rangebound as the country waits for NZ First leader Winston Peters to decide which party he will form the next governing coalition with. Late Wednesday, Peters said his party is moving as fast as it can to decide on the next government and "we are just asking for a bit of patience," according to the New Zealand Herald. Peters has said a decision on the make-up of the next government was likely sometime this week.

The kiwi "is a bit weaker so we may be getting close to an announcement," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank. However, it's largely treading water as "everyone is just waiting, it's in a holding zone," he said.

The kiwi rose to 54.29 British pence from 54.04 pence yesterday and was at 91.16 Australian cents from 91.26 cents yesterday. It traded at 4.7317 yuan from 4.7290 yuan and rose to 80.34 yen from 80.27 yen. It traded at 60.82 euro cents from 60.81 cents.

New Zealand's two-year swap rate was unchanged at 2.19 percent and 10-year swaps fell 2 basis points to 3.17 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Westpac: More Job Opportunities, But Growth In Workers’ Earnings Remains Subdued

The Westpac McDermott Miller Employment Confidence Index rose 1.2 points in the December quarter, to a level of 106.9. This was the sixth straight rise in the index since the Covid-19 lockdown in 2020. Michael Gordon, Acting Chief Economist for Westpac, noted that the rise in the index has largely been driven by perceptions... More>>




Statistics: Card Spending Continues To Increase As COVID-19 Restrictions Ease

The busy Christmas period combined with easing COVID-19 restrictions helped to increase card spending in December 2021, Stats NZ said today... More>>


Westpac NZ: Warns About Sophisticated New Scam
Westpac NZ is warning New Zealanders about a sophisticated new scam that involves a fake Westpac investment prospectus.
The prospectus is formatted to resemble a Westpac document and includes professional-looking imagery... More>>


TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>


Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>