Kiwi dollar heads for weekly decline

  • 08/08/2014

The New Zealand dollar is heading for a 0.8 percent weekly decline as heightened geo-political tensions in Iraq and the Ukraine sap investors' appetite for risk-sensitive assets.

The kiwi fell to 84.45 US cents at 5pm in Wellington from 85.16 cents today in New York last week. It traded at 84.84 cents at 8am and 84.56 cents on yesterday.

The trade-weighted index declined to 79.26 from 79.39 on yesterday, and is heading for a 0.5 percent weekly fall.

Demand for the local currency was sapped after dairy prices fell to a two-year low, and the kiwi has remained under pressure with escalating geo-political tensions.

US President Barack Obama has approved airstrikes against militants in Iraq if they threatened US personnel, while a build-up of Russian troops on the Ukraine border already had investors nervous.

"The kiwi's falling on the back of risk aversion returning, not just dairy prices," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.

"It's just a matter of time before the 84 US cents level breaks down."

The kiwi dropped to 85.93 yen at 5pm in Wellington from 86.47 yen on yesterday, traded at 91.34 Australian cents from 91.26 cents and at 63.22 euro cents from 63.19 cents.

NZN

source: newshub archive


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