Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ dollar climbs above 77 cts, fourth-best performer in 2010

NZ dollar climbs above 77 US cts, fourth-best performer in 2010

By Paul McBeth

Dec. 31 (BusinessDesk) – The New Zealand dollar climbed above 77 U.S. cents for the first time since November as strong commodity prices underpinned support for riskier, or higher-yielding, assets, leaving the kiwi poised to be the fourth-best currency this year.

The kiwi, Australian and Canadian dollars, viewed as commodity currencies, were bolstered by more strength in copper, aluminium and lead prices as investors look for bigger returns in thin trading during the holiday season. The kiwi’s 6.7% gain is the fourth biggest this year behind the yen, Australian dollar and Swiss franc. The kiwi hit a 31-year high against the pound, touching 50.09 pence, after analysts were more pessimistic about the outlook for the U.K. economy in the face of its austerity measures.

“The commodity currencies have had the tail-wind of a weak U.S. dollar and high commodity prices” over the Christmas and New Year period, said Mike Jones, strategist at Bank of New Zealand. “The moves have been overstated by thin liquidity trading in the market at the moment, and when people return from holiday, we’ll see the currencies revert back to fundamentals.”

The kiwi climbed to 77.04 U.S. cents from 76.76 cents yesterday, and rose to 68.95 on the trade-weighted index of major trading partners’ from 68.75. It advanced to 49.94 pence from 49.48 pence yesterday, and increased 75.82 Australian cents from 75.41 cents. It was little changed at 57.90 euro cents from 57.98 cents yesterday, and climbed to 62.85 yen from 62.51 yen.

Jones said the currency may trade between 76.60 U.S. cents and 77.30 cents today.

The commodity currencies pared some of their gains after upbeat American data buoyed the greenback, with jobless claims falling to a two-year low last week, while house sales rose in November.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

'Visionary' Leaders: Primary Sector Council Announced

A group of visionary agribusiness leaders is set to help our primary sector capture more value from its work, Minister of Agriculture and Rural Communities Damien O’Connor says ... More>>

ALSO:

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:

Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO: