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

 


NZ dollar falls vs. yen as pace of BOJ easing weighed

NZ dollar falls vs. yen as pace of BOJ easing weighed, building consents loom

Jan. 9 (BusinessDesk) – The New Zealand dollar extended its decline from a four-year high against the yen as traders pondered the pace of monetary easing by the Bank of Japan that has weakened its currency against most trading peers.

The New Zealand dollar dropped to 72.8 yen from 73.10 yen at 5pm in Wellington yesterday. The kiwi slipped to 83.49 US cents from 83.55 cents.

The Bank of Japan will consider monetary easing this month and may double its inflation target to lift growth in the world’s third-biggest economy, Reuters reported, citing unnamed sources. The BOJ, under pressure from new Prime Minister Shinzo Abe, will likely adopt an inflation target of 2 percent at its meeting on Jan. 21-22, the report said. At home, building consents for November are due later this morning, which may show a rebound after a 1.5 percent decline in October.

“We suspect the NZD/JPY has gotten itself a little overstretched (on the JPY side),” Mike Jones, currency strategist at bank of New Zealand, said in his morning note. “To us, the balance of risks is still skewed in favour of additional NZD/JPY appreciation, but we may see a near-term correction back towards 70.00 before the uptrend resumes.”

Helping weaken risk sentiment, stocks on Wall Street declined ahead of earning season, expected to show tepid growth in corporate profits in the fourth quarter. And the US National Federation of Independent Business said its Small Business Optimism Index rose 0.5 to 88 last month. That's the second lowest reading since March 2010.

The kiwi dollar’s near-term range may be 82.80 US cents to 84 cents, Jones said.

The New Zealand dollar fell to 79.55 Australian cents from 79.71 cents. It climbed to 52.03 British pence from 51.86 pence and rose to 63.85 euro cents from 63.62 cents.

The trade-weighted index was at 75.14 from 75.16.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news