The New Zealand Dollar weakened against all of its most traded peers on Wednesday after the nation’s trade deficit unexpectedly widened in August and as Fonterra Cooperative Group Ltd, the biggest dairy exporter in the country revealed that its earnings shave shrunk.
Government figures showed that the trade deficit grew to its biggest level in five years with the deficit growing to $1.19 billion in August. The cause for the surprise widening was being blamed on falling milk exports and a number of food scares that have impacted New Zealand’s biggest industry of food production, the latest of which was the export of rotten apples to China, the latest food gaff to the country’s biggest trading partner.
Fonterra meanwhile revealed that its full-year earnings fell after a drought earlier in the year affected milk production. The company has been beset by food scandals in recent months with the biggest being a contaminated milk scare in August. The company reported annual earnings of $1 billion, confirming that it missed its forecasts by 7.3%. It also warned that the start of 2014 would be relatively tight in financial terms.
As a result of the widening deficit and latest food scandal the New Zealand Dollar fell to lowest level in a week against the US Dollar and dropped against the Pound. Also weighing upon the currency is the ongoing will they won’t they saga of the US Federal Reserve’s decision to taper its quantitative easing programme. Its decision to not scale back in September has yet again created unease and speculation in the markets with some economists expecting a cut to be announced in October.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8229 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6100 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5143 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8809 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1215 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6391 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1351 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1781 >
(Correct as of 09:35 am GMT)
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