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

 

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