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

 


NZD rises as US trade deficit widens; Singapore holds fire

NZ dollar rises as US trade deficit widens; Singapore holds fire

By Hannah Lynch

Oct 12 (BusinessDesk) - The New Zealand dollar rose after Singapore unexpectedly refrained from monetary stimulus and the US trade deficit in August widened as slower global growth reduced demand for exports.

The New Zealand dollar traded at 81.92 US cents at 5pm, up from 81.78 cents at 8am and 81.80 cents yesterday. The trade weighted index was little changed on 73.11 from 73.01.

Growth-linked currencies such as the New Zealand dollar rose after the Monetary Authority of Singapore left monetary policy unchanged even after its economy shrank 1.5 percent in the September quarter. US Commerce Department figures showed the trade deficit widened 4.1 percent to $44.2 billion from $42.5 billion in July.

"The initial spur came from the Singapore central bank," said Imre Speizer, market strategist at Westpac Banking Corp. "In a wider sense it was bullish for the Asian currencies with the kiwi and the Aussie responding."

"We got a second wind with the trade data around 2.15 this afternoon," Speizer said.

The kiwi fell to 63.35 euro cents from 63.55 cents on speculation indebted nation Spain will seek a bailout after its credit rating was downgraded to one level above junk by Standard & Poor's, spurring bets the region's debt crisis is easing.

"The market will force them to ask for a bailout if they don't," Speizer said. "If they do it soon it is a positive for the kiwi dollar."

There is no significant New Zealand data set for release until Tuesday when the consumer price index by Statistics New Zealand and Australia’s full monetary policy statement are set for release.

The New Zealand dollar stayed under 80 Australian cents, rising to 79.76 cents from 79.53 cents yesterday at 5pm and increased to 64.23 yen from 63.83 yen. It was little changed on 51.12 British pence from 51.05 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news