NZ dollar touches fresh lows as economy weakens 1 Jul 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
NZ dollar touches fresh lows as weakening economy stokes calls for interest rate cuts
By Tina Morrison
July 1 (BusinessDesk) - The New Zealand dollar touched its lowest level in more than five years against the greenback and the pound, and its lowest against the Australian dollar in a year and a half, after signs the economy is slowing stoked expectations the Reserve Bank would make further interest rate cuts.
The kiwi dropped as low as 67.45 US cents, and was trading at 67.73 cents at 8am in Wellington, from 68.06 cents at 5pm yesterday. The local currency touched 42.92 British pence and was trading at 43.10 pence at 8am, from 43.26 pence yesterday. It touched 87.64 Australian cents, and was trading at 87.78 cents at 8am from 88.64 cents yesterday.
New Zealand's economy is showing further signs of weakening, after business confidence turned pessimistic for the first time in four years, while growth in building consents stalled, and farmer confidence slumped to the lowest level in a decade amid low dairy prices. Traders are pricing in an 84 percent chance that Reserve Bank governor Graeme Wheeler will reduce the benchmark interest rate at this month's meeting, according to the overnight index swap curve, and Deutsche Bank said a further two cuts were likely in September and October, taking the benchmark to 2.5 percent.
"Deutsche Bank has been very aggressive in its call for rates to be at 2.5 percent by the end of the year, which is another 75 basis points worth of cuts," said Tim Kelleher, ASB Bank head of institutional FX sales New Zealand. "It puts us back on a rate cut path. Because of that and lower yield, the money will go to markets with have got more liquidity for the same value. We have certainly seen some pretty strong selling of kiwi."
ASB's Kelleher noted the 20-year average for the kiwi was 65.50 US cents.
Tonight, traders will be eyeing the latest GlobalDairyTrade auction, with average prices at the last auction falling to the lowest level since August 2009.
The New Zealand dollar was little changed at 60.74 euro cents from 60.79 cents yesterday as Greece is expected to default on a loan from the International Monetary Fund amid reports the country has asked for a two-year bailout and debt restructure.
The local currency slipped to 82.91 yen from 83.22 yen yesterday. The trade-weighted index fell to 70.81 from 71.19 yesterday.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more