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

 


NZ dollar pares gain as investors sell into risk rally

NZ dollar pares gain as investors sell into risk rally amid signs of China slowing

By Paul McBeth

Feb. 25 (BusinessDesk) - The New Zealand dollar pared gains in local trading after an upbeat Northern Hemisphere session when equity markets rallied and fears over tensions in Ukraine eased.

The kiwi fell to 83.30 US cents at 5pm in Wellington from 83.88 cents at 8am, though still up from 82.77 cents yesterday. The trade-weighted index rose to 78.18 from 77.76 yesterday.

Investors took advantage of last night’s gains, taking profit from the rally in the kiwi after stocks on Wall Street gained spurring demand for risk-sensitive currencies. Those gains were underpinned by expectations Ukraine will be able to attract international aid after lawmakers ousted President Viktor Yanukovych to quell the prospect of a civil war.

“There was a bit of a risk-on environment overnight helped by the Ukraine situation seeming to calm down,” said Michael Johnston, senior trader at HiFX in Auckland. “The equities rally helped pull up commodity currencies such as the kiwi and Aussie, and people have been selling into it.”

HiFX’s Johnston said the currency will probably stay in its recent range between 82.60 US cents and 83.50 cents.

The kiwi rose to a three-month high 5.1047 Chinese yuan, trading at 5.0893 yuan at 5pm from 5.0436 yuan yesterday after China’s currency dropped on speculation the People’s Bank of China wants to end its steady appreciation ahead of a possible widening of the band, according to a Bloomberg report.

China’s Shanghai Composite Index extended yesterday’s decline, down 1.8 percent in afternoon trading, led by property stocks amid speculation lending curbs will slow down the economy.

HiFX’s Johnston said the potential slowdown will have more of an impact on the Australian dollar than the kiwi, as it’s often seen as a proxy for investors to get exposure to China. The kiwi traded at 92.28 Australian cents at 5pm in Wellington from 92.34 cents yesterday.

The local currency gained to 85.38 yen from 84.63 yen yesterday, and gained to 60.65 euro cents from 60.25 cents. It rose to 49.99 British pence from 49.74 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news