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

 


NZ dollar climbs above 78 US cents

NZ dollar climbs above 78 US cents

By Paul McBeth

June 27 (BusinessDesk) - The New Zealand dollar rose above 78 US cents as weak US economic data cast doubt on how quickly the Federal Reserve will stop its money-printing policy.

The kiwi rose to 78.19 US cents at 5pm in Wellington from 77.93 cents at 8am and 77.35 cents yesterday. The trade-weighted index advanced to 73.75 from 72.98.

Commerce Department figures yesterday showed the US economy grew at a 1.8 percent annualised pace in the first quarter, slower than the prior reading of 2.4 percent. That gave investors more to think about after US Fed chairman Ben Bernanke signalled he will start unwinding the central bank’s US$85 billion monthly bond buying programme as long as the data continues to back an economic recovery.

“People are probably going to be looking for Fed rhetoric,” said Alex Hill, head of dealing at HiFX in Auckland. “It looks like the kiwi wants to go a little higher from here.”

Hill said the currency may trade between 77.20 US cents and 79.50 cents going into the end of the week.

New Zealand business confidence rose to a three-year high this month as a booming construction sector underpinned sentiment, while trade figures showed a smaller surplus in May than expected.

Reserve Bank deputy governor Grant Spencer told a business audience in Wellington that hiking interest rates wasn’t the right policy response to an overheated property market right now, and that the introduction of restrictions on home loan leveraging is preferred to quell the bubble.

Separately, RBNZ figures showed the central bank was a net buyer of New Zealand dollars in May, with a net $90 million in purchases. That was a turnaround from its net sale of $256 million in April when RBNZ governor Graeme Wheeler said the bank had intervened in foreign exchange markets to take the tops off rallies and remind currency traders not to make one-way bets on the kiwi.

The local currency rose to 83.90 Australian cents from 83.48 cents yesterday and increased to 76.43 yen from 75.57 yen. The local currency gained to 59.99 euro cents from 59.18 cents and advanced to 50.97 British pence from 50.15 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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