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


NZ dollar drops below US68c on plan to up bank capital

NZ dollar drops below US68c on plan to up bank capital

By Paul McBeth

Dec. 14 (BusinessDesk) - The New Zealand dollar fell below 68 US cents for the first time in two weeks after the Reserve Bank outlined plans for lenders to hold greater capital reserves, which would likely boost borrowing costs and slow the economy.

The kiwi dropped to 67.96 US cents as at 5pm in Wellington from 68.57 cents immediately before the release and 68.56 cents yesterday. The trade-weighted index was at 74.31 from 74.82 yesterday.

The local currency is heading for a 1 percent weekly decline against the greenback as the stiffer capital requirements added to investor nervousness in thinly traded markets. 0

The Reserve Bank's move added to general unease among investors as Chinese data showed weaker retail sales than expected, and on growing speculation that US President Donald Trump may face impeachment. Stocks across Asia fell, with Hong Kong's Hang Seng down 1.4 percent in afternoon trading.

"That's been a bit of a negative for the kiwi," said Martin Rudings, senior dealer foreign exchange at OMF. "There's a bit of stuff going on with Trump and that's affecting equity markets, creating a risk-off feeling across Asia."

Local data today showed New Zealand's housing market continued to cool in November, while a manufacturing survey indicated an upbeat outlook after a mediocre period in the middle of the year.

New Zealand's two-year swap rate increased 1 basis point to 2.08 percent, and 10-year swaps were down 1 basis point at 2.76 percent.

The kiwi fell to 59.80 euro cents from 60.31 cents yesterday. The European Central Bank kept its key rate unchanged overnight and confirmed plans to end its quantitative easing programme at the end of the month.

Meanwhile, British Prime Minister Theresa May is attempting to gain concessions from the European Union over the Brexit deal, having seen off a leadership challenge. The kiwi dropped to 53.80 British pence from 54.34 pence yesterday.

The kiwi dropped to 94.45 Australian cents from 94.84 cents yesterday and declined to 4.6813 Chinese yuan from 4.7116 yuan. It fell to 77.12 yen from 77.77 yen yesterday.


© 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>>