NZD falls as investors reduce risk in face of bond rout 14 Sep 2016
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
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
Wednesday 14 September 2016 05:21 PM
NZ dollar falls as investors reduce risk in face of global bond rout, selloff in stocks
By Jonathan Underhill
Sept. 14 (BusinessDesk) - The New Zealand dollar fell as investor risk appetite waned in the face of a global rout in bonds, weaker stocks and concerns the Federal Reserve may yet surprise markets by hiking interest rates next week.
The kiwi fell to 72.60 US cents as at 5pm in Wellington, and earlier touched as low as 72.29 cents, from 73.39 cents late yesterday. The trade-weighted index fell to 77.59 from 78.13.
The yield on 10-year US Treasuries has climbed to its highest levels since early June while the yield on New Zealand 10-year government bonds has climbed to 2.559 percent, the highest since June 22. The VIX Index, known as Wall Street's fear gauge, rose to 18.8, the highest since the Brexit spike and the CRB Index of 19 commonly traded commodities declined 1.3 percent to a week-low. The market is also mulling the prospects for the Federal Reserve's monetary policy review next week after mixed views from Fed officials unnerved investors, who had expected interest rates to stay on hold until December.
"Bonds everywhere are getting sold off - people are selling equities because rates are higher, so risk currencies are off," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank. Meanwhile, "talk of the Fed next week is getting stronger. Markets have succumbed to the view that central banks can't save everything. If you've got negative yields what else are you going to do."
The kiwi didn't move much after figures showed the current account balance turned to a deficit of $945 million in the three months ended June 30, from a revised first-quarter surplus of $1.18 billion. The annual deficit was $7.4 billion, or 2.9 percent of gross domestic product, compared with a forecast in a Reuters survey of 2.7 percent of GDP.
The local currency fell to 97.09 Australian cents from 97.28 cents yesterday and fell to 4.8444 yuan from 4.9017 yuan. It dropped to 64.70 euro cents from 65.33 cents and was little changed at 55 British pence from 55.02 pence. The kiwi declined to 74.77 yen from 75.03 yen yesterday.
New Zealand's two-year swap rate edged up one basis point to 2.03 percent at 5pm in Wellington, and 10-year swaps gained 6 basis points to 2.59 percent.
(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