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

 


NZ dollar gains as investors reassured on Chinese liquidity

NZ dollar gains as investors reassured about Chinese liquidity, growth

By Tina Morrison

June 26 (BusinessDesk) – The New Zealand dollar gained as investors were reassured China’s central bank would help ease a credit crunch that sparked concerns about growth in the world’s second-largest economy.

The kiwi edged up to 77.30 US cents from 77.16 cents at 5pm in Wellington yesterday. In the past 12 hours, the local currency has traded as low as 76.95 cents and as high as 77.95 cents. The trade-weighted index inched up to 72.91 from 72.79 yesterday.

The New Zealand dollar dropped yesterday as Asian stock markets fell and traders dumped risk-sensitive currencies on concern a tightening of banking liquidity by the People’s Bank of China would sap growth in the world’s second biggest economy. The kiwi then rebounded after China’s central bank said it had provided liquidity to some financial institutions to stabilise money-market rates, the first official signs of relief to ease a credit crunch.

“The Chinese stock market plunged 6 percent during our late afternoon then in the last hour of trading it completely reversed and closed slightly up for the day,” said Imre Speizer, senior currency strategist at Westpac Banking Corp. “The initial scare completely subsided, that helped things rebound a bit and then everything just went sideways. For the day, it can correct a bit higher.”

China is the world’s most-populous country and New Zealand’s second-largest export market.

New Zealand’s dollar has been on a downward path against the greenback since Federal Reserve chairman Ben Bernanke said last week the central bank may start winding back its US$85 billion a month asset purchase programme this year if economic data continues to improve.

In the US yesterday, economic figures provided evidence of further strength, as reports on durable goods orders, sales of new homes, home prices and consumer confidence all beat analysts’ expectations.

The Conference Board’s index of consumer confidence rose to 81.4 in June from 74.3 in May. Durable goods orders gained 3.6 percent last month, while sales of new homes increased more than forecast in May, climbing to the highest level in almost five years, and home prices rose more than forecast in the 12 months through April.

The New Zealand dollar may continue its decline, said Westpac’s Speizer. “It’s just a short-term correction and it shouldn’t last more than a few days,” he said.

The kiwi was little changed against the Australian dollar, recently trading at 83.44 Australian cents, from 83.47 cents yesterday. The local currency edged up to 75.58 yen from 75.23 yen, it rose to 59.05 euro cents from 58.83 cents and gained to 50.09 British pence from 49.98 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news