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


NZ dollar climbs to 16-mth high on TWI on Wheeler's outlook

NZ dollar climbs to 16-mth high on TWI after Wheeler rules out rate cut

By Paul McBeth

Dec. 7 (BusinessDesk) - The New Zealand dollar climbed to a 16-month high on a trade-weighted basis after investors piled into currency after Reserve Bank governor Graeme Wheeler yesterday all-but ruled out a rate cut as he zeroes in on potential inflation emerging in the country's housing market.

The trade-weighted index rose as high as 74.45, the highest level since August last year, and traded at 74.36 at 8am in Wellington from 74.03 yesterday. The kiwi rallied to 83.12 US cents from 82.87 cents yesterday.

RBNZ's Wheeler kept the official cash rate at 2.5 percent and told reporters it will stay there until the end of 2013 as he keeps tabs on an Auckland property market that's heating up and building inflation pressures in the Canterbury rebuild. The bank hiked its projections for the TWI and sees it holding above 73 until December 2013, and falling to 71.40 in early 2015.

"The RBNZ gave the market the green light to keep buying the kiwi and that's what they've done," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "The currency looks very strong and completely shook off a near 1 cent collapse in the euro."

The kiwi may trade between 82.85 US cents and 83.50 cents today as investors await US employment figures in the Northern Hemisphere session, and as traders wait for American legislators to strike up a deal to prevent the fiscal cliff of $607 billion in tax increases and spending cuts from kicking in next year.

"That may also keep investors reluctant to push the kiwi above 83.50 US cents," Jones said.

The Bank of England and European Central Bank both kept their respective monetary policies unchanged, though the ECB cut its growth and inflation forecasts. The kiwi jumped to 64.17 euro cents from 63.50 cents yesterday, and advanced to 51.80 British pence from 51.52 pence.

The kiwi dollar rose to 79.33 Australian cents from 79.19 cents yesterday, and gained to 68.46 yen from 68.38 yen.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news