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 Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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