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: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news