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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news