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

 


NZ dollar gains ahead of RBNZ statement

NZ dollar gains ahead of RBNZ statement seen as kicking off tightening cycle

By Paul McBeth

March 11 (BusinessDesk) - The New Zealand dollar gained in local trading on expectations the Reserve Bank will hike the official cash rate at this Thursday’s policy review, kicking off a prolonged tightening cycle.

The kiwi rose to 84.81 US cents at 5pm in Wellington from 84.64 cents at 8am and 84.61 cents yesterday. The trade-weighted index advanced to 79.50 from 79.19 yesterday.

Traders have lifted bets on a rate hike on Thursday, pricing in a 101 percent chance central bank governor Graeme Wheeler will raise the official cash rate, according to the Overnight Index Swap curve. Yesterday traders are pricing in a 98 percent chance. Wheeler has signalled interest rates will start rising this year as he attempts to head of the threat of future inflation as the local economy gathers momentum.

“The kiwi has certainly outperformed the Aussie, suggesting that it’s kiwi-specific,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “It’s looking slightly bullish on the day, and as long as we don’t get any shenanigans from geopolitics, there’s every chance it could take a stab at 85.25 US cents.”

New Zealand house sales fell 7.6 percent in February from a month earlier, indicating the Reserve Bank’s curbs on low-equity home lending were having an effect on the lower end of the market, while government figures showed retail spending on credit and debit cards gained last month, led by increased spending on hospitality.

The kiwi rose to 93.92 Australian cents at 5pm in Wellington from 93.53 cents yesterday after the National Australia Bank business survey showed firms were gloomier in February after an optimistic January. The weak survey followed a drop in iron ore prices yesterday amid deteriorating Chinese trade figures.

The local currency gained to 87.61 yen from 87.22 yen yesterday after the Bank of Japan maintained its near-zero interest rate policy and affirmed an annual expansion of the monetary base by 60 to 70 trillion yen. Japan’s central bank said the economy is expected to continue with a moderate recovery, and anticipates annual inflation of 1.25 percent to persist for some time.

The kiwi gained to 61.15 euro cents at 5pm in Wellington from 60.91 cents yesterday, and reached a two-month high 50.98 British pence, trading at 50.95 pence at 5pm from 50.56 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news