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

 


NZ dollar maintains its strength against rising US currency

NZ dollar maintains its strength against rising US currency as local economy grows

By Tina Morrison

March 21 (BusinessDesk) – The New Zealand dollar held its ground against a stronger US currency overnight, as investors gained confidence from the South Pacific nation’s strong domestic economy after fourth-quarter growth met expectations.

The kiwi edged up to 85.31 US cents at 8am in Wellington, from 85.27 cents at 5pm yesterday. The trade-weighted index increased to 80.04 from 79.90 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, advanced after the Federal Reserve signalled US interest rates may rise faster than traders were anticipating as the world’s largest economy improves. Still, support remains buoyant for the New Zealand currency after a report yesterday showed gross domestic product rose 0.9 percent in the last three months of 2013.

“There’s been further US dollar strength overnight and the New Zealand dollar has withstood that, and with the Australian dollar, it has moved alongside the US dollar,” said Peter Cavanaugh, client adviser at Bancorp Treasury Services. “The US has got a better story than major economies outside of China and New Zealand has got an even better story.”

The New Zealand dollar weakened to 94.36 Australian cents from 94.54 cents yesterday.

In New Zealand today, February reports are due for ANZ Job Advertisements, net migration and credit card spending. The ANZ-Roy Morgan Consumer Confidence Index for March is also scheduled for publication.

Strong prints from migration and credit card spending would reinforce expectations that the Reserve Bank of New Zealand will raise the benchmark interest rate at the next couple of meetings, said Bancorp’s Cavanaugh. The bank hiked rates at this month’s meeting by a quarter point to 2.75 percent.

The kiwi advanced to 87.40 yen from 87.26 yen yesterday, jumped to 51.68 British pence from 51.54 pence and increased to 61.89 euro cents from 61.64 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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