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


NZ dollar rises to 6-year high vs. yen

NZ dollar rises to 6-year high vs. yen as NZ looks to raise rates while Japan continues stimulus

By Tina Morrison

Jan. 6 (BusinessDesk) – The New Zealand dollar hit a six-year high against the yen this morning and may trend higher this year reflecting the divergent paths of the nations’ central banks.

The kiwi touched 86.90 yen this morning, the highest level since February 2008, and was trading at 86.85 yen at 8am in Wellington, from 85.67 yen at 5pm on Friday. The local currency advanced to 82.81 US cents, from 82.72 cents at the New York close and 82.16 cents in Wellington Friday.

The New Zealand dollar has rallied 18 percent against the yen the past year as New Zealand’s Reserve Bank moves to tighten interest rates to cool a reviving local economy while the Bank of Japan has pledged to keep interest rates low and eyes the prospect of further stimulus to boost inflation.

“The anticipation of pending rate rises, whether it comes in January or March, is adding to the strength of the kiwi dollar,” said Stuart Ive, senior adviser at OMF. “The yen is weakening. They are stimulating their economy and will continue to do so for at least the next year and a half.

“It’s the tale of two cities between the central banks, we have one that has clearly signalled they intend to raise rates in the near future whilst on the Japanese front they have no intention to do such a thing.”

OMF’s Ive said the kiwi is likely to move higher against the yen this year and will likely make an attempt on its post-float high of 97.81 yen reached in July 2007.

Today, traders will be eyeing an HSBC/Markit Services PMI report for December, scheduled for release at 2:45pm New Zealand time.

The New Zealand dollar rose to 92.40 Australian cents from 91.81 cents in Wellington Friday, advanced to 60.92 euro cents from 60.16 cents and gained to 50.47 British pence from 49.99 pence. The trade-weighted index increased to 78.39 from 77.65 on Friday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news