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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Efficiency: Businesses And Households To Save From New Energy Plans

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news