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

 


NZ dollar gains amid hopes fiscal cliff will be scaled

NZ dollar gains amid hopes fiscal cliff will be scaled, Greece will get bail-out cash

By Paul McBeth

Nov. 20 (BusinessDesk) - The New Zealand dollar gained as equity markets rallied amid hopes US policymakers will reach agreement over the US$607 billion fiscal cliff and Greece will secure the next tranche of its rescue package.

The kiwi rose to 81.84 US cents at 8am in Wellington from 81.34 cents yesterday. The trade-weighted index advanced to 73.41 from 73.09 yesterday.

Stocks on Wall Street and in Europe gained amid growing optimism US President Barack Obama will reach a deal with the House of Representatives to avert automatic spending cuts and tax hikes that would push the world's biggest economy back into recession. The Standard & Poor's 500 index rose 1.6 percent and Germany's DAX 30 index rallied 2.5 percent.

Investors are also hopeful European policymakers will sign off on the next aid payment for Greece, with the yield on the Mediterranean nation's 10-year bond falling 8.9 basis points to 17.2 percent.

"Investors certainly seem hopeful we'll get done with the fiscal cliff and Greece will get its next cart of bail-out cash, and that hope is keeping equity markets perky," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "That's keeping the kiwi riding high."

The Reserve Bank of Australia will today release the minutes from this month's policy meeting, where the board unexpectedly kept the target cash rate at 3.25 percent. Governor Glenn Stevens is also scheduled to deliver a speech on the general state of domestic economy. The kiwi advanced to 78.63 Australian cents from 78.38 cents yesterday.

The Bank of Japan will review monetary policy today and is expected to keep interest rates near zero and maintain its asset-purchase programme as general elections loom next month which may install a new government. The kiwi climbed to 66.41 yen from 66.08 yen yesterday.

New Zealand's currency increased to 63.91 euro cents from 63.72 cents yesterday, and gained to 51.45 British pence from 51.09 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news