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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news