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

 


NZ dollar surges to 6-year high vs. yen on risk appetite

NZ dollar surges to 6-year high vs. yen as investors favour buoyant local economy

By Tina Morrison

March 7 (BusinessDesk) – The New Zealand dollar surged to a six-year high against the yen as investors favoured higher yielding risk sensitive assets.

The kiwi touched 87.57 yen this morning, its highest level since February 2008, and was trading at 87.33 yen at 8am in Wellington from 86.45 yen at 5pm yesterday. The local currency touched a four-month high of 85.02 US cents and was trading at 84.84 cents at 8am from 84.22 cents yesterday.

The New Zealand dollar soared higher as investors seeking yield are buoyed by a slew of positive data on the local economy which is expected to see interest rates move higher from next week. Signs of a revival in Australia’s economy, after better-than-expected trade and retail sales reports yesterday, are also buoying the local currency, traders said.

“The NZD has surged higher overnight, riding a wave of positive risk sentiment and benefiting from a positive AUD story,” Bank of New Zealand currency strategist Raiko Shareef said in a note. “The strong risk-driven bid heavily favour the NZD/JPY.”

The yen was also weakened after advisers to Japan’s US$1.26 trillion public pension fund said the fund need not cling on to the safety of Japanese government bonds, Reuters reported.

The New Zealand dollar weakened to 93.22 Australian cents from 93.40 cents yesterday after the stronger-than-expected Australian data reduced speculation Australia’s central bank could cut interest rates further. Today, all eyes will be on Reserve Bank of Australia governor Glenn Stevens’ testimony to a parliamentary economic committee at 11:30am New Zealand time.

In the US later today, traders will be eyeing the key non-farm payrolls report for February, which is expected to show 150,000 jobs were added during the month, up from 113,000 in January.

The local currency slipped to 61.21 euro cents from 61.36 cents yesterday after the European Central Bank indicated the chances of further policy easing are slim.

The kiwi advanced to 50.62 British pence from 50.39 pence yesterday after the Bank of England kept its policy rate and the size of its asset purchase programme unchanged.

The trade-weighted index increased to 79.34 from 79.08 yesterday. The TWI touched 79.50 overnight, just 0.2 percent shy of its record 79.70 level from April last year, BNZ’s Shareef said.

“Should US non-farm payrolls disappoint tonight, a challenge of that level would not be surprising,” Shareef said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news