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

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news