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

 


NZ dollar heads for 1.7 percent weekly gain vs. yen

NZ dollar heads for 1.7 percent weekly gain vs. yen as polls point to new Japanese govt

By Paul McBeth

Nov. 23 (BusinessDesk) - The New Zealand dollar is heading towards a 1.7 percent weekly gain against the yen after polling showed Japanese voters are backing a change of government that may take a more activist role in weakening the currency, while figures point to a weakening economy.

The kiwi traded at 67.10 yen at 5pm in Wellington from 67.21 yen yesterday, having touched a seven-month high yesterday. The yen is poised to weaken by 1.2 percent this week, recently trading at 82.19 yen per US dollar.

Former Japanese Prime Minister Shinzo Abe's Liberal Democratic Party will win next month's election, according to a Nov. 15 Jiji Press opinion poll, which showed support for current leader Yoshihiko Noda plunged after he doubled sales tax in a bid to revive the flagging economy.

Abe has backed more monetary easing and has said he may review legislation ensuring the independence of the Bank of Japan. The election battle comes as official figures showed Japan's trade deficit was wider than anticipated.

"It's possible we'll get a new government and Bank of Japan leader, but whether they do anything different, we'll have to wait and see," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "The yen came an awful long way" this week and may continue to depreciate, he said.

Trading in Japan is closed for a public holiday, and investors will be looking at inflation and industrial production figures from the world's third-biggest economy next week.

The kiwi is heading for a 0.5 percent weekly gain against the greenback, trading at 81.63 US cents at 5pm in Wellington from 81.55 cents yesterday. Trading in the US is expected to be thin after yesterday's Thanksgiving Holiday.

Strategists surveyed by BusinessDesk on Monday predicted the kiwi would stay in range of 80.50 US cents and 82.50 cents this week as US legislators tried to hammer out a deal to avert US$607 billion of automatic Federal spending cuts and tax increases.

New Zealand's currency fell to 63.32 euro cents from 63.50 cents yesterday after European finance chiefs failed to reach agreement on how Greece can secure the next round of its bail-out cash this week. The finance ministers will meet again on Monday.

The trade-weighted index was little changed at 73.27 from 73.30, and is heading for a 0.2 percent increase on the week. The kiwi edged up to 51.16 British pence from 51.09 pence, and was little changed at 78.51 Australian cents from 78.48 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news