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

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

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>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news