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

 

NZD weaker as greenback gains

NZD weaker as greenback gains on news US-China trade talks to recommence


By Rebecca Howard

July 24 (BusinessDesk) - The New Zealand dollar fell after the greenback got a lift from news that US trade negotiators will head to China to recommence trade talks.

The kiwi was trading at 67.02 US cents at 8am in Wellington from 67.31 at 5pm. The trade-weighted index eased to 73.42 points from 73.66.

US trade negotiators will head to China for face-to-face talks as the world’s two largest economies try to strike a deal, sources told CNBC.

The U.S. officials will travel to China for discussions sometime between Friday — the start of a six-week congressional recess in Washington — and Thursday, Aug. 1.

The greenback was also firmer after US President Donald Trump and US lawmakers reached a two-year deal lifting government borrowing limits to cover spending. "We must never let the full faith and credit of the United States come under threat, and therefore are proud to have lifted the debt limit until July 31, 2021," said Speaker of the House Nancy Pelosi. The Republican-led senate must also pass the measure before it can be signed into law and Trump has indicated he will sign it.

“Kiwi lagged its G-10 peers, and sank as the USD maintained its strength on the back of the US debt ceiling agreement. Markets also continued to unwind their expectations for aggressive policy easing in the US,” said ANZ FX/rates strategist Sandeep Parekh.

The kiwi was at 53.90 British pence from 54.03 after news that Boris Johnson, who promised to exit the European Union with or without deal by the end of October, will replace Theresa May as prime minister.

“In the short term, ongoing uncertainty and the proximity of the Brexit deadline will continue to weigh,” said Parekh. He noted, however, with the UK Parliament going into summer recess at the end of this week and not returning until Sept. 3, there is unlikely to be much Brexit news of substance in the near term.

The New Zealand dollar was at 95.70 Australian cents from 95.86, at 60.11 euro cents from 60.13, at 72.56 yen from 72.78 and at 4.6108 Chinese yuan from 4.6328.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

SMC Expert Reaction: Record Dry Spells And Effects On Forests

With no rain forecast before Sunday, Auckland is about to break a record for the city's longest dry spell. Niwa says Auckland is likely to hit 40 consecutive days without rain this weekend . The upper North Island is seeing severe meterological ... More>>

ALSO:

Reserve Bank: Official Cash Rate Remains At 1.0 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. ... More>>

ALSO:

Research: Climate Change Throws Tree Seeding Out Of Sync – New Study

Climate change is negatively affecting tree reproduction by throwing seed production systems out of synchronisation, according to a new international study co-authored by a University of Canterbury scientist. Many tree species worldwide produce large ... More>>

ALSO:


Science Media Centre: Novel Coronavirus Detected In China – Expert Reaction

The virus was detected after more than 40 people were hospitalised with pneumonia in Wuhan City, China and the outbreak traced to a large animal and seafood market. The Centers for Disease Control and Prevention reports that person-to-person transmission ... More>>

ALSO:

Science Media Centre: Flooding could release toxic gas – Expert Reaction

A chemical substance known as ouvea premix stored at an old paper mill in Mataura could release toxic ammonia gas if it comes in contact with water.More>>

ALSO: