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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news