News | Business
19 Feb 2018 17:16
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • News
  • Sport
  • Weather
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    NZD gains on questions over Trump

    The Kiwi dollar gained on speculation there will be less need to raise interest rates in the US because the Trump administration is distracted by scandal.

    18 May 2017

    The New Zealand dollar gained on speculation there will be less need to raise interest rates in the US because the Trump administration is too distracted by scandals - such as the firing of the Federal Bureau of Investigation chief - to enact economy-boosting policies and inflation data has been weak.

    The kiwi advanced to US69.38c as at 8am in Wellington from US68.96c late on Wednesday.

    The trade-weighted index increased to 75.21 from 74.86 on Wednesday.

    Stocks on Wall Street dropped with the Standard & Poor's 500 index down 1.7 per cent in late trading, the US dollar index, a broad measure of the greenback, fell 0.6 per cent, and the yield on 10-year US Treasuries fell 10 basis points as investors scaled back their expectations for the Federal Reserve to raise interest rates this year.

    The downbeat tone came amid reports alleging Trump may have tried to influence the FBI investigation into his national security adviser Michael Flynn, days after he shared secret intelligence with Russian officials.

    The Chicago Board Options Exchange's volatility index, known as Wall Street's 'fear gauge', jumped 45 per cent to 15.43.

    "The combination of a potentially weaker inflation environment than previously thought and less chance that Trump's fiscal stimulus will see the light of day has softened the outlook for Fed tightening," Bank of New Zealand currency strategist Jason Wong said in a note.

    "On most USD indices, the big rally in the USD following Trump's surprise election in November has now been fully unwound."

    The local currency rose to A93.37c from A92.90c after Standard & Poor's affirmed its AAA credit rating for Australia on Wednesday, while keeping a 'negative' outlook on the federal government's ability to balance the books by 2020-21.

    The kiwi increased to 62.20 euro cents from 62.09 euro cents. It was trading near an 11-month low as the Trump administration's woes sapped demand for the greenback and as the election of Emmanuel Macron to the French presidency calmed investors nervous about the region's economy.

    The local currency increased to 53.52 British pence from 53.32 pence on Wednesday and dropped to 77.03 yen from 77.60 yen.

    It rose to 4.7742 Chinese yuan from 4.7493 yuan on Wednesday.


    NZN




    © 2018 NZN, NZCity


     Other Business News
     19 Feb: Freightways' new addition on budget
     19 Feb: Company fails to recover stolen $360k
     19 Feb: Sunscreen maker agrees to SPF changes
     19 Feb: Freightways first-up revenue lifts
     19 Feb: NZX annual profit gets 62pc boost
     19 Feb: Strong US data, trade war fears hit kiwi
     19 Feb: Tech conference looks at future for NZ
     Top Stories

    RUGBY RUGBY
    Fidow can wow them: Hurricanes team-mate More...


    BUSINESS BUSINESS
    Freightways' new addition on budget More...



     Today's News

    Entertainment:
    A watch once owned by Elvis Presley is to be sold at auction 17:05

    Politics:
    Government looks to release TPP text 16:55

    Entertainment:
    Ciara and Russell Wilson have shared the first pictures of their baby daughter 16:35

    Dunedin:
    Fatal house fire leads to murder charge 16:15

    Entertainment:
    Robert Pattinson says love is "complicated" 16:05

    Entertainment:
    Allison Janney wants to win an Oscar so she doesn't disappoint her family 15:35

    Education:
    History shows Generation Z could turn the tide on America's gun culture 15:25

    Cricket:
    Agar accepts Eden Park's T20 challenge 15:25

    Business:
    Freightways' new addition on budget 15:25

    Skiing:
    Winter Olympics: David Morris's dream of Pyeongchang gold ends after 'ludicrous' judging score 15:15


     News Search






    Power Search


    © 2018 New Zealand City Ltd