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

 


NZ dollar gains ahead of fiscal cliff meeting on Sunday

NZ dollar gains as US politicians set Sunday meeting for fiscal cliff vote

By Paul McBeth

Dec. 28 (BusinessDesk) - The New Zealand dollar gained in local trading on optimism US politicians will be able to set aside partisan differences and cut a deal on the US$600 billion in Federal tax increases and spending reductions with a vote set for Sunday.

The kiwi rose to 82.11 US cents at 5pm in Wellington from 81.83 cents at 8.30am and 81.89 cents yesterday. The trade-weighted index rose to 73.76 from 73.53 yesterday.

The US House of Representatives will hold a session on Sunday in a last ditch effort to avert the fiscal cliff, which comes into effect on Jan. 1. Congress majority leader and Republican Eric Cantor announced the vote on Twitter after Senate majority leader and Democrat Harry Reid said a deal was looking unlikely.

Politicians don't have to reach a compromise before the New Year and can amend legislation after it kicks in, though similar stalling tactics on the debt-ceiling debate last year saw Standard & Poor's downgrade America's credit rating.

"There's a growing risk one of the credit agencies will downgrade them regardless," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. The kiwi had "quite a strong rally and bounced off its low on the back of the supposed meeting of the politicians."

Kelleher said the kiwi is finding buyers at 81.50 US cents and sellers at 82.50 cents.

The kiwi extended gains against the yen and is headed for a 2.2 percent weekly gain against Japan's currency as investors prepare for the new Shinzo Abe-led government to take a more active role in the economy. The currency rose to 70.92 yen from 70.30 yen yesterday.

The kiwi was little changed at 79.09 Australian cents from 79.07 cents yesterday, and traded at 61.99 euro cents from 61.93 cents. The local currency increased to 50.96 British pence from 50.80 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news