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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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