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

 


NZ dollar climbs above 83 US cts as dairy prices surge

ollar climbs above 83 US cts as dairy prices surge at Fonterra
auction

By Paul McBeth

March 6 (BusinessDesk) - The New Zealand dollar rose above 83 US cents after dairy prices surged at Fonterra Cooperative Group's latest online auction, as drought threatens to engulf most of the North Island.

The kiwi climbed to 83.18 US cent at 8.30am in Wellington from 82.92 cents yesterday. The trade-weighted index advanced to 76.34 from 76.12.

The average price across all products sold on the GlobalDairyTrade auction website climbed 10.4 percent, with whole milk powder prices surging 18 percent. The increased prices come as Hawkes Bay pushes to be declared a drought-zone, meaning it would qualify for central government aid, amid arid conditions throughout the North Island.

Dairy products account for about a quarter of New Zealand's annual $45.69 billion in export receipts, and movements in their pricing are seen as a barometer for the country's economy.

"The majority of the move was because of the forthcoming drought and Fonterra's production volume being smaller," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional. "There's no room to be negative on risk currencies, but the kiwi's not going anywhere fast."

The local currency may trade between 83 US cents and 83.50 cents today, Kelleher said. He expects the kiwi to face some selling later in the week after News Corp exited its $815 million stake in local pay-TV operator Sky Network Television.

Investors recovered some appetite for higher-yielding assets after softer Chinese data earlier in the week, and the Dow Jones Industrial Average rose 1 percent to 14265.06 in late afternoon trading in New York and faces a record close.

The kiwi was little changed at 81.10 Australian cents from 81 cents yesterday after the trans-Tasman currencies rallied yesterday on stronger economic data across the Tasman and the Reserve Bank of Australia keeping rates unchanged.

The local currency rose to 77.60 yen from 77.24 yen yesterday, and increased to 63.79 euro cents from 63.62 cents. It advanced to 55.03 British pence from 54.78 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news