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


NZ dollar sheds gains amid reports of North Korean nuke test

NZ dollar sheds gains amid reports of North Korean nuke testing

Feb. 12 (BusinessDesk) - The New Zealand dollar shed gains in local trading amid fears seismic activity in North Korea may be the result of nuclear testing, a prospect likely to spook investors.

The kiwi fell to 83.45 US cents at 5pm in Wellington from 83.78 cents at 8am and up from 83.28 cents yesterday. The trade-weighted index rose to 76.01 from 75.54 yesterday.

The Australasian currencies dipped after media reports cited the US Geological Survey noting seismic disturbances near the sites of North Korea's two previous nuclear sites - areas with little or no history of earthquakes.

"Reports of nuclear testing in North Korea can often makes things happen," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "We don't know whether that's to blame, but nothing else has happened."

The kiwi gained against most currencies in Northern Hemisphere trading after a contender for Bank of Japan chief said he favoured more stimulus and Bundesbank chief Jens Weidmann scotched comments that the euro is overvalued.

The local currency jumped to 78.66 yen from 77.02 yen yesterday and was little changed at 62.32 euro cents from 62.27 cents.

Imre Speizer, market strategist at Westpac Banking in Auckland, said the New Zealand's dollars run against the greenback probably needs new upbeat economic news to break it out of its recent trading range.

"We need growth to start around the world to move up to the next level," he said.

Speizer said the kiwi has been trading on the cross-rates relative to the performance of the respective economies, rather than global sentiment that groups so-called risk-sensitive currencies together.

The New Zealand dollar gained to 81.45 Australian cents at 5pm in Wellington from 80.89 cents yesterday, and rose to 53.34 British pence from 52.72 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news