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

 


NZ dollar pares loss vs. euro on Italian election

NZ dollar pares loss vs. euro as investors mull make-up of Italian parliament

By Paul McBeth

Feb. 25 (BusinessDesk) - The New Zealand dollar pared losses against the euro in the local session as investors mull the make-up of Italy's Parliament in the first election since the global financial crisis saw the installation of technocrat executive.

The kiwi rose to 63.41 euro cents at 5pm in Wellington from 63.15 cents this morning, and little changed from 63.51 cents on Friday in New York. The currency was little changed at 83.63 US cents from 83.73 cents last week.

Frontrunner Pier Luigi Bersani of the Democratic Party, who has vowed to follow Prime Minister Mario Monti's austerity drive, may not be able to govern even if he gets a parliamentary majority as former Prime Minister Silvio Berlusconi and Beppe Grillo's 5-Star Movement siphon his support.

"The euro could have a bit of a comeback once the uncertainty of the election goes," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "The kiwi could pull back a little bit" against the region's single currency.

New Zealand's currency continues to be supported by the real interest rates on offer, in a growing economy that's likely to see rising interest rates as soon as this year. A BusinessDesk survey of strategists leaned towards a weekly decline.

The kiwi rose to 81.37 Australian cents at 5pm in Wellington from 81.17 cents last week after the HSBC flash PMI showed a slower pace of manufacturing growth in China that expected. Australia is more heavily exposed to China's economy than New Zealand.

Investors are waiting for Federal Reserve chairman Ben Bernanke’s semi-annual update for US lawmakers on Tuesday and Wednesday. The testimony will be closely watched after minutes from the latest Fed meeting sparked concern the central bank might ease or end its stimulus measures sooner than expected.

The kiwi rose to 78.19 yen from 78.16 yen last week as investors prepare for the expected appointment of the next governor of the Bank of Japan.

The currency gained to 55.26 British pence from 55.08 pence last week after the UK had its AAA-rating cut by Moody's Investors Service to Aa1.

The trade-weighted index was little changed at 76.56 from 76.50 last week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

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:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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