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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news