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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news