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

 


NZ dollar pushes top of greenback, euro ranges as ECB looms

NZ dollar pushes top of greenback, euro ranges as ECB meeting looms

By Paul McBeth

Jan. 9 (BusinessDesk) - The New Zealand dollar rose to the top of recent trading ranges against the greenback and euro as investors gear up for the European Central Bank to review its monetary policy amid signs the 17-nation bloc's economy is deteriorating.

The kiwi rose to 83.80 US cents at 5pm in Wellington from 83.50 cents at 8am and 83.55 cents yesterday. It advanced to 64.09 euro cents from 63.63 cents yesterday.

European central bankers are expected to keep the benchmark interest rate at a record-low 0.75 percent when they review monetary policy settings at their Jan. 10 meeting, as weaker economic figures spark fears about the region's ability to recover from its sovereign debt crisis. Euro-zone unemployment rose to a record 11.8 percent in November, according Eurostat data, while separate data showed Germany's exports dropped more than expected in the same month.

"The kiwi/euro might continue to rally up if people talk about cutting rates" at the ECB meeting, said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. The currency "looks a little overstretched at 64/64.50 euro cents."

The New Zealand currency has decoupled slightly from US equities, with stocks on Wall Street falling in the lead-up to fourth-quarter earnings season, and Kelleher said it will probably get sold at 84/84.50 US cents. Aluminium producer Alcoa kicked off the season after the close of trading, and signalled it expects demand for the metal to grow 7 percent this year.

New Zealand building consents fell 5.4 percent in November to 1,423 due to a small issuance of apartment consents, which are typically volatile. Excluding apartments, building consents climbed 4.6 percent in the month.

The kiwi dollar increased to 79.84 Australian cents from 79.71 cents yesterday after government figures showed consumer spending across the Tasman unexpectedly shrank 0.1 percent in November.

New Zealand's currency gained to 73.27 yen from 73.10 yen yesterday after Reuters reported the Bank of Japan will consider monetary easing this month and may double its inflation target to 2 percent.

The kiwi rose to 52.22 British pence from 51.86 pence yesterday and the trade-weighted index advanced to 75.45 from 75.16.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news