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

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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news