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

 


NZ dollar extends gains as Bollard says economy understated

NZ dollar extends gains as Bollard says economy understated

By Paul McBeth

Feb. 17 (BusinessDesk) – The New Zealand dollar extended gains through the local trading session after Reserve Bank Governor Alan Bollard said the nation’s economic performance is probably understated by official data, amid upbeat investor sentiment on strong US data.

The kiwi rose to 83.67 US cents at 5pm from 83.24 cents just before 8.30am and 82.78 cents yesterday. The trade-weighted index advanced to 73.73 from 73.13.

Demand for the kiwi was stoked by Bollard’s speech to a business audience in Auckland, where he said “it is almost certain that consistent measurement conventions used in New Zealand and Australia would narrow the reported gap with Australia.” The different ways gross domestic product is measured in the trans-Tasman neighbours could be short-changing New Zealand by as much 10 percent.

“It was a little bit more an upbeat assessment from the governor,” said Dan Bell, currency strategist at HiFX in Auckland. “The kiwi has the potential to drift a little higher overnight, towards the five-month high.”

The currency was bolstered yesterday after investors’ appetite for higher-yielding, riskier assets was stoked by better than expected American employment, housing and manufacturing data. That upbeat sentiment carried through the local session, with stock markets gaining throughout the Asia Pacific. Australia’s Standard & Poor’s/ASX 200 index was up 0.4 percent in afternoon trading, while Japan’s Nikkei 225 gained 1.8 percent and Hong Kong’s Hang Seng climbed 0.7 percent.

That quelled fears from the day before about Greece’s ability to tap a bail-out fund after European finance ministers considered delaying the rescue package. The region’s policymakers are due to meet on Monday for more discussions about the Mediterranean nation.

HiFX’s Bell said traders are continuing to focus on good news, which has kept appetites for riskier assets high, but markets are still incredibly volatile.

“The market is becoming a little bit more comfortable with the idea of a Greek default,” Bell said.

The New Zealand dollar increased to 63.73 euro cents from 63.54 cents yesterday and gained to 52.95 pence from 52.79 pence. It rose to 66.12 yen from 63.54 yen yesterday, and advanced to 77.62 Australian cents from 77.45 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news