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

 

NZ dollar drops to new 5-month low

NZ dollar drops to new 5-month low as policy uncertainty weighs on investors

By Paul McBeth

Oct. 25 (BusinessDesk) - The New Zealand dollar extended its decline, falling to a fresh five-month low, as the lack of hard policy in governance agreements between the Labour, NZ First and Green parties continued to unnerve markets.

The kiwi fell as low as 68.84 US cents and traded at 69.02 cents as at 8am in Wellington from 69.44 cents yesterday. The trade-weighted index dropped to 72.95 from 73.27 yesterday and is at an 18-month low.

Since NZ First leader Winston Peters declared his support for a Labour-led government, the local currency has dropped 2.7 percent against the greenback as investors weigh up the outlook for the domestic economy under a new administration. The release of the NZ First coalition agreement and confidence and supply deal with the Greens didn't quell concerns over the proposed policy direction with a lack of detail in the short documents. Prime Minister-elect Jacinda Ardern will deliver a speech to the Council of Trade Unions today after announcing the make-up of her ministry.

"The document was surprisingly vague and didn’t reveal anything new," Bank of New Zealand currency strategist Jason Wong said in a note. "The information vacuum was probably the main reason for the fall in the NZD, with the level of uncertainty about the outlook likely to remain heightened for longer."

The kiwi fell to a 19-month low against its trans-Tasman counterpart, trading at 88.57 Australian cents from 88.78 cents yesterday. Australian inflation data today is expected to show an accelerating pace of rising consumer prices across the Tasman.

The local currency dropped to 4.5784 Chinese yuan from 4.6052 yuan as China's five-year Communist Party Congress drew to a close, where delegates voted to make 'Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era' a guiding principle for the party, putting President Xi on par with Mao Zedong and Deng Xiaoping.

The kiwi declined to 58.53 euro cents from 59.01 cents yesterday ahead of the European Central Bank meeting on Thursday. It traded at 52.54 British pence from 52.52 pence and fell to 78.38 yen from 78.69 yen yesterday.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Retail Card Spending Down 0.2 Percent In July
Retail card spending fell $11 million (0.2 percent) between June 2022 and July 2022, when adjusted for seasonal effects, Stats NZ said today... More>>




Barfoot & Thompson: Auckland Rental Prices Inch Up Again, But Upward Trend Could Ease In Coming Months

Data from nearly 16,000 rental properties managed by real estate agency Barfoot & Thompson shows Auckland’s average weekly rent rose by $6.12 (or 1 percent) during the second quarter... More>>

ComCom: Draft Report Says Regulatory System Favours Established Building Products
The Commerce Commission’s draft report into competition in the residential building supplies industry has identified two main factors negatively impacting competition... More>>


Commerce Commission: Draft Determination On News Publishers’ Association’s Collective Bargaining Application
The Commerce Commission (Commission) has reached a preliminary view that it should allow the News Publishers’ Association of New Zealand (NPA) to collectively negotiate with Meta and Google... More>>


Heartland: Retirees Facing Pressure From Higher Cost Of Living And Increasing Debt In Retirement

Heartland has seen a significant increase in Reverse Mortgages being used to repay debt. Among the most affected by the increasing living costs are retirees, many of whom are trying to get by on NZ Super alone... More>>


APEC: Region’s Growth To Slow Amid Uncertainties And Crises
Economic growth in the APEC region is expected to slow this year amid soaring inflation, a protracted war in Ukraine and heightened uncertainties, on top of the continuing impact of the pandemic and virus mutations that are draining resources, according to a new report by the APEC Policy Support Unit... More>>