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

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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