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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news