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

 

NZ dollar advances as investors favour risk sensitive assets

NZ dollar advances as investors favour risk sensitive assets after Crimea, Yuan fears ease

By Tina Morrison

March 18 (BusinessDesk) – The New Zealand dollar rose as investors returned to more risk sensitive assets as fears over an escalation of tension in Ukraine proved unfounded and markets were relatively stable after China widened the trading band of its currency.

The kiwi increased to 85.67 US cents at 8am in Wellington from 85.32 cents at 5pm yesterday. The trade-weighted index gained to 79.92 from 79.70 yesterday.

Risk sensitive assets such as equities and the New Zealand dollar advanced after investors were becalmed by the moderate diplomatic reaction following Crimea’s vote to join Moscow over the weekend as the US and European Union imposed sanctions. The People’s Bank of China doubled the yuan’s trading band, seen as a move to support the world’s second-biggest economy amid slowing exports.

“Markets breathed a collective sigh of relief last night as fears of Crimea and China volatility failed to materialise,” ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. “Safe havens Japanese yen and Swiss franc depreciated, while the risk sensitive New Zealand dollar and Australian dollar appreciated.

The local currency is likely to maintain its strength today as there is little fundamental news to change market sentiment, ANZ said.

The New Zealand dollar advanced to 87.16 yen from 86.62 yen yesterday.

The kiwi slipped to 94.27 Australian cents from 94.43 cents yesterday. The Aussie strengthened after Westpac Banking Corp said yesterday it no longer expects Australia’s central bank to cut rates this year.

The Reserve Bank of Australia releases the minutes of its last meeting today, which are expected to confirm interest rates will remain on hold. Traders will be looking for any further comment on the “high” level of the currency, which was mentioned in the March statement, ANZ said.

The local currency gained to 61.55 euro cents from 61.35 cents yesterday and increased to 51.50 British pence from 51.28 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: