INDEPENDENT NEWS

NZ dollar weighed on by escalating trade tensions

Published: Tue 14 May 2019 11:21 AM
NZ dollar weighed on by escalating trade tensions as China retaliates
By Rebecca Howard
May 14 (BusinessDesk) - The New Zealand dollar continued to be weighed on by escalating global trade tensions, with China now saying it will raise tariffs on some US goods from June 1.
The kiwi was trading at 65.71 US cents at 8am in Wellington from 65.76 US cents late yesterday. The trade-weighted index was at 72.19 from 72.13.
Market jitters were stoked when China announced it would impose higher tariffs on a range of US goods in the wake of Washington’s decision last week to hike tariffs on US$200 billion of Chinese imports. Additional US tariffs on all remaining Chinese imports, which would affect an additional US$300 billion worth of goods, have not been decided on yet.
Late in the session, President Donald Trump indicated he would speak with his Chinese counterpart Xi Jinping during the G-20 summit. Treasury Secretary Steven Mnuchin said that US-China trade talks are still ongoing, which helped to relieve some pressure.
"News of a Trump-Xi meeting provides a glimmer of hope, but safe-haven assets remain favoured by markets at present," said ANZ Bank FX/rates strategist Sandeep Parekh.
"Financial markets are pricing in easier monetary policy from central banks as global trade risks and risk aversion rise," he said. "The kiwi will continue to struggle in the current environment."
The kiwi was trading at 4.5185 Chinese yuan from 4.5101 yesterday, at 94.60 Australian dollars from 94.25, at 50.70 British pence from 50.57, at 58.50 euro cents from 58.58, and at 72.83 Japanese yen from 72.20.
(BusinessDesk)
ends
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Fish & Game back call from Canterbury Officer of Health
By: Fish and Game New Zealand
Government invests in cancer research, vertical farm science
By: New Zealand Government
Net migration remains high
By: Statistics New Zealand
Costco to open first NZ store at Westgate in Auckland
By: BusinessDesk
Fungal disease claims life of seventh kākāpō
By: RNZ
Growing risk of nitrate contamination private water supplies
By: Water New Zealand
Government to invest $75m into Gracefield Innovation Quarter
By: BusinessDesk
Defence to draw more on local suppliers, smarts
By: BusinessDesk
Investment in Gracefield Innovation Quarter
By: New Zealand Government
Government matches Malaghan Institute’s ambitions for cancer
By: Malaghan Institute
Funding for World Class Innovation Hub Welcomed
By: Hutt City Council
Supporting Innovations in Heart Health
By: National Heart Foundation
‘Best brains’ awarded postgraduate scholarships
By: Universities New Zealand - Te Pokai Tara
MBIE funding embeds start-up as world-leading agtech company
By: BioLumic
Helping farmers see the future
By: AgResearch
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media