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

 


NZ dollar gains as Boehner stokes optimism on fiscal cliff

NZ dollar gains as Boehner stokes optimism fiscal cliff will be averted, stocks rise

By Paul McBeth

Nov. 29 (BusinessDesk) - The New Zealand dollar gained after comments from US House of Representatives Speaker and senior Republican John Boehner stoked optimism policymakers will set aside their differences and bypass the fiscal cliff of US$607 billion in automatic tax hikes and spending cuts, stoking investor confidence and pushing stocks higher.

The kiwi dollar rose to 82.34 US cents at 8.30am in Wellington from 82.14 cents yesterday. The trade-weighted index advanced to 73.64 from 73.46.

Stocks on Wall Street rallied after Boehner said he was willing to put revenues up for negotiation if it was accompanied by spending cuts and that he was optimistic lawmakers could "avert this crisis sooner rather than later."

Investors have been fretting the world's biggest economy will be stuck in a stalemate similar to this year's debt ceiling debate that saw Standard & Poor's cut its triple-A credit rating, and ultimately slip back into recession. The Standard & Poor's 500 Index gained 0.4 percent.

Markets rallied after "some positive words from Boehner on trying to solve the fiscal cliff," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. "The kiwi should squeeze up on the day."

The currency may trade between 82.25 US cents and 82.75 cents, with a fall in commodity prices holding back gains, he said.

Traders will be looking for Australian capital expenditure figures today, which are expected to show the world’s 12th biggest economy might be starting to slow down after the resources boom gave it a buffer during the global financial crisis.

Australian business investment rose 2 percent in the three months ended Sept. 30 after growing 3.4 percent in the previous quarter, according to a Bloomberg survey of economists. The kiwi was little changed at 78.60 Australian cents from 78.56 cents yesterday.

The currency rose to 67.38 yen from 67.22 yen yesterday, and increased to 51.43 British pence from 51.30 pence. It advanced to 63.68 euro cents from 63.50 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news