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

 


NZ dollar rises on indications of recovery without price pre

NZ dollar rises on indications of recovery without price pressures

Jan 15 (BusinessDesk) - The New Zealand dollar rose on indications that the economy is finally gaining momentum without setting off inflation and after US Federal Reserve chairman Ben Bernanke indicated quantitative easing to stimulate the US economy would continue throughout 2013.

The kiwi was at 83.94 US cents at 5.25pm, from 83.94 US cents at 8am and 84.02 US cents at 5pm on Monday, according to Reuters.

It spiked through 84 cents about 10am after the Quarterly Survey of Business Opinion indicated the economy surged in the December quarter and after another strong report the residential property market from the Real Estate Institute of New Zealand.

"We've been here before with various sentiment surveys and noted the failure of the economy to kick on," ANZ economists said.

The QSBO suggested the next move in the official cash rate was likely to be up though benign readings on prices suggested it was some time away.

As traders absorbed the positive domestic news Bernanke warned that the US was not out of the woods yet with respect to government finances.

Having avoided "fiscal cliff" policies that risked putting the economy into recession politicians must still tackle the debt limit issue and spending.

The Fed last month opted to keep buying Treasury bonds and mortgage-backed securities to stimulate the economy, having held interest rates at near zero since December 2008.

But minutes from the Fed's December policy meeting released earlier this month showed a range of views about when bond purchases should end. Bernanke's latest comments were taken to confirm an extended period of so-called "QE3" is in prospect, which led to weakness for the US dollar in Asian markets.

The kiwi was at 62.91 euro from 62.71 euro and at 52.26 British pence from 52.00 on Monday.

Against the Australian dollar it was at 79.70 Australian cents from 79.62 cents on Monday.

The trade-weighted index was at 75.42 from 75.32.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news