NZ dollar falls over half a US cent; Key talks down currency 8 Aug 2012
- US retailers weighing on orange roughy prices, Sanford says Business
- MARKET CLOSE: NZ shares drop on profit taking, Fed jitters Business
- Bupa gains court approval to buy Dental Corp in Aust, NZ Business
- NZ dollar faces more downside Business
- NZ Sugar Company boosts profits on higher exports Business
- Greymouth Petroleum shucks off disaffected shareholder Business
- Lance Wiggs's Punakaiki Fund mulls $50 million IPO Business
- Ecoya ekes out small annual profit, EBITDA up 26% Business
- Snakk raises $6.5M in over-subscribed issue Business
- SFO charges seven people over mortgage fraud Business
NZ dollar falls over half a US cent as Key talks down currency
By Hannah Lynch
Aug. 8 (BusinessDesk) - The New Zealand dollar fell over half a US cent after Prime Minister John Key indicated the kiwi has room to fall and its current strength could stifle the local economy.
The New Zealand dollar fell to 81.46 US cents at 8am from 82.02 cents yesterday at 5pm. The trade weighted index decreased to 73.22 from 73.54.
The kiwi has been one of the best-performing Group of 10 currencies this year, pushing toward new highs on all the crosses except against Australia’s dollar. Key told Bloomberg News that one-way bets on continued strength in the New Zealand dollar were “not a very smart thing to do.” He also said the high dollar "takes the pressure off the Reserve Bank" to raise rates.
"So the fact the New Zealand dollar spent most of this morning on the back foot likely reflects a delayed reaction to some comments from Prime Minister Key last night," said Mike Jones, market strategist at Bank of New Zealand.
Key’s comments were unlikely to have been an attempt to influence the central bank and “from this perspective, the falls in the NZD/USD look to be an overreaction,” he said.
The kiwi fell to 77.23 Australian cents from 77.49 cents yesterday after the Reserve Bank of Australia left its target cash rate unchanged on 3.5 percent on Tuesday. Governor Glenn Stevens said that "China's growth has moderated to a more sustainable pace, but does not appear to be slowing further."
China, New Zealand's second-largest export market, has a raft of data out this week, with inflation and retail sales on Thursday followed by trade balance statistics on Friday.
New Zealand's QV monthly house price statistics for July will be released today. Property values rose 1.8 percent in the three months ended June 30 as homes in Auckland and Christchurch continued to appreciate amid a shortage of supply.
The New Zealand dollar fell to 65.73 euro cents from 66.19 cents and declined to 52.13 British pence from 52.62 pence. The kiwi dropped to 64.07 yen from 64.20 yen.
24 May 2013 News
New Zealand Government Hon Judith CollinsMinister for Ethnic Affairs 24 May 2013 Collins announces Language Line expansion Ethnic... more
24 May 2013 Business News
Article - BusinessDesk US retailers weighing on orange roughy prices with sustainability concerns, Sanford says May 24 ... more
24 May 2013 Entertainment
Base FM It marks the conclusion of NZ Music Month for 2013 and a new era for Base FM. The team were under much deliberation ... more
23 May 2013 Property
Article - BusinessDesk By Paul McBeth May 23 (BusinessDesk) - DNZ Property Fund, which reported a 14 percent decline in ... more
23 May 2013 Migration
New Zealand Government Hon Murray McCullyMinister of Foreign Affairs 23 May 2013 Media Statement Ambassador to... more
22 May 2013 Travel & Tourism
Queenstown is the world's 25th best destination, according to TripAdvisor. The global travel website released its latest survey... more
24 May 2013 Rugby
All Black lock Ali Williams has announced his retirement from international rugby. The 77-test veteran who made his debut in 2002 made... more
24 May 2013 Column
Gordon Campbell on failures of care for those with mental disabilities, and Murray McCully‘s latest gaffes by Gordon ... more
24 May 2013 People
New Zealand Defence Force A poster showing a soldier’s grave has won 11 year old Sam Sutcliffe, of Kerikeri, first prize... more
23 May 2013 Recruitment
New Zealand Government Hon Steven JoyceMinister for Economic Development Hon Simon BridgesMinister of Energy & Resources The... more