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


NZ dollar heads for 1.2% gain on TWI as economy grows

NZ dollar heads for 1.2% gain on TWI as economy grows, speculation on Fonterra payout

March 22 (BusinessDesk) - The New Zealand dollar is heading for a 1.2 percent weekly gain on a trade-weighted basis after figures showed the economy grew at almost twice the Reserve Bank's expected pace in the fourth quarter and amid talk Fonterra Cooperative Group may hike its payout next week.

The kiwi rose to 76.46 on the trade-weighted index at 5pm in Wellington from 76.16 yesterday. It gained to 83.12 US cents from 82.73 cents yesterday, and is heading for a 0.6 percent weekly gain.

The local currency rallied after government figures yesterday showed gross domestic product grew 1.5 percent in the three months ended Dec. 31, almost twice the Reserve Bank's expectations. That comes as investors wait for Fonterra's first half earnings next week, which are expected to include an increase in the forecast payout to farmers as drought saps the domestic supply of dairy products.

"The kiwi's firmed a little and might go up a bit," said Imre Speizer, market strategist at Westpac Banking. "It fell below 83 US cents a few weeks ago, and now it knocking back on the door" of the higher range, he said.

Speizer said the currency may rally against the Australian dollar after a "stonking GDP." It rose to 79.80 Australian cents from 79.67 cents yesterday.

Markets will keep watching for any movement in Cyprus on a potential bailout package as the Mediterranean nation threatens the rest of the European Union. The local currency gained to 64.43 euro cents from 63.87 cents yesterday.

The kiwi slipped to 79.01 yen from 79.31 yen yesterday, and increased to 54.80 British pence from 54.67 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