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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news