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

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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