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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news