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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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