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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news