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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news