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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news