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

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news