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

 


NZ dollar gains as tough-talking Japanese govt lifts stocks

NZ dollar gains as tough-talking Japanese govt lifts Asian stocks, fiscal cliff looms

By Paul McBeth

Dec. 27 (BusinessDesk) - The New Zealand dollar rose in local trading as the prospect of a stronger Japanese government stoked investors' appetite for riskier assets, with stock markets gaining across Asia.

The kiwi rose to 81.98 US cents at 5pm in Wellington from 81.69 cents at 8am and 82.15 cents in Asian trading yesterday. The currency gained to 70.30 yen from 70.08 yen yesterday.

Japan's Nikkei 225 index climbed 1.3 percent in afternoon trading, leading stocks across the region higher, after new Prime Minister Shinzo Abe directed his finance minister Taro Aso to increase coordination with nation's central bank in nobbling the yen's strength to kick some life back into the country's exports. Japan's currency depreciated to 85.80 yen per US dollar, its weakest level since September 2010.

"If you're in Asia at the moment, you're fairly upbeat that we might start to see signs of improvement in the Japanese economy," said Robert Rennie, chief currency strategist at Westpac Banking in Sydney. "The sharp weakening in the yen has been a key driver."

That comes as US legislators try to muddle through their partisan politicking in trying to avert the fiscal cliff of US$600 billion of Federal tax increases and spending cuts, which would send the world's biggest economy back into recession.

Westpac's Rennie there's a growing feeling that US policymakers won't be able to cut a deal before the Jan. 1 deadline when the cliff comes into effect, and that markets will have to wait until January until a resolution is reached. That will keep a cap on the kiwi dollar at about 82 US cents, he said.

New Zealand's trade-weighted index fell to 73.52 from 73.68 yesterday, and the kiwi declined to 79.05 Australian cents from 79.29 cents. The currency fell to 50.72 British pence from 50.90 pence yesterday and dropped to 61.92 euro cents from 62.20 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news