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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news