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

 


NZ dollar edges up as central bank meetings loom

NZ dollar edges up as central bank meetings loom, emerging markets calmer

By Paul McBeth

Jan. 29 (BusinessDesk) - The New Zealand dollar rose as fears over emerging markets fell, fuelling demand for risk-sensitive assets such as the kiwi, and ahead of the Reserve Bank of New Zealand and US Federal Reserve policy reviews tomorrow.

The kiwi increased to 82.81 US cents at 5pm in Wellington from 82.59 cents at 8am and 82.75 cents yesterday. The trade-weighted index rose to 78.37 from 78.20 yesterday.

Global stock markets rallied and investors returned to riskier assets after fears over some developing economies subsided, with Turkey’s central bank hiking interest rates to quell a sell-off of Turkish lira.

That comes ahead of the Federal Open Market Committee meeting, which is expected to see the Fed trim another US$10 billion from its US$75 billion monthly asset purchase programme, and New Zealand’s central bank meeting, which has divided markets on whether governor Graeme Wheeler will raise interest rates at this review or the next.

“Only if we get a hike will it be good for the kiwi,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “The signal to March (for a rate hike) might pull the kiwi back a bit, and no signal will see it fall sharply.”

Westpac’s Speizer said the local currency may test the upside of its recent range between 82.20 US cents and 83 cents on the upbeat sentiment.

New Zealand’s economy and the government’s books got the seal of approval from Moody’s Investors Service today, with the rating agency saying both were improving after a prolonged, albeit mild, recession and the spate of earthquakes in 2010 and 2011. New Zealand is rated ‘Aaa’ by Moody’s.

The New Zealand dollar was unchanged from 94.06 Australian cents yesterday, and gained to 85.46 yen from 84.93 yen. It edged up to 60.66 euro cents from 60.48 cents, and increased to 49.95 British pence from 49.79 pence yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news