The New Zealand dollar hit a 0.6 percent weekly decrease following business confidence’s drop. Finance Minister Grant Robertson said that the economy may face a slow-pace growth next year.
From 68.46 cents late yesterday and from 68.64 cents a week ago, the kiwi dollar was down at 68.30 U.S. cents as of 5 pm in Wellington. The trade-weighted index also slipped to 72.12 from 72.25.
The kiwi fell on Thursday after the most recent ANZ Business Outlook displayed a net 39 percent of firms project the economy to depreciate over the next twelve months, the weakest level since early 2009. There may be a slow movement of economic growth next year as the housing market lowers and immigration is constricted, which also affected the kiwi, Finance Minister Grant Robertson said in his speech.
Ross Weston, a senior trader at Kiwibank, said that the kiwi “is certainly moving southward. The business confidence survey is still holding over the market while the USD is showing some resurgence on more optimism about the tax package.”
Weston said the market is now expecting for any news on the U.S. tax package. While the U.S. dollar surged this week on a positive note that it was likely to pass there remains problems. According to a report, the U.S. Senate suspended the voting on the Republican tax change on Thursday as the bill was tumbled by obstacles with a revision sought by fiscal hawks to address a great expansion of the federal budget discrepancy expected to result from the measure.
The Senate deliberated the legislation late into Thursday and put off, delaying any votes until Friday morning. It remains unclear if a conclusive vote on the bill would take place then, the report said.
The kiwi dropped to 50.47 British pence from 50.82 pence late yesterday. It slipped to 57.35 euro cents from 57.69 cents, fell to 4.5181 yuan and increased to 76.88 yen from 76.65 yen. It traded at 90.31 Australian cents from 90.21 cents.
New Zealand’s two-year swap rate declined 1 basis point to 2.12 while the 10-year swap rate remained the same at 3.07 percent.
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