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

 


NZ dollar gains ahead of MPS on weak EU data, Wall St up

NZ dollar gains ahead of MPS on weak EU data, gains on Wall Street

Dec. 6 (BusinessDesk) - The New Zealand dollar rose against most of its trading peers after weaker economic data in the euro zone and glimmers of hope in stalled Washington talks over the fiscal cliff, which helped lift equities.

The kiwi dollar rose to 82.55 US cents from 82.48 cents at 5pm in Wellington yesterday. The trade-weighted index rose to 73.66 from 73.52.

The Reserve Bank is expected to keep the official cash rate at a record low today though traders are divided on whether his commentary will be hawkish or dovish and he may single out the persistently high currency for special mention. The Dow Jones Industrial Average climbed about 0.9 percent, recovering from an earlier decline as Washington stayed in focus.

“Our central view is the market will respond to the more dovish tone expressed by the RBNZ, by increasing its pricing for rate cuts in the year ahead,” said Kymberly Martin, a strategist at Bank of New Zealand. “This would likely undermine the relative yield support for the NZD.”

President Barack Obama said at a quarterly meeting of the Business Roundtable in Washington that an agreement on budget negotiations could be reached in a week if the Republicans ceded ground on tax increases for the wealthiest Americans. Meantime, a gauge of services industries in the US rose faster than expected last month.

The kiwi dollar rose to 68 yen from 67.80 yen on continued speculation a change of government in japan this month would herald more aggressive efforts to weaken the currency.

The local currency gained to 78.90 Australian cents from 78.71 cents. It rose to 63.08 euro cents from 62.90 cents after Spain sold fewer bonds than it had targeted and a combined euro zone index of manufacturing and services remained in contraction.

The kiwi rose to 51.25 British pence from 51.19 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news