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

 


NZD little changed this week as Fed spurs greenback demand

NZ dollar little changed this week as Fed spurs greenback demand

By Paul McBeth

March 21 (BusinessDesk) - The New Zealand dollar is almost unchanged this week after the Federal Reserve’s growing optimism on the strength of the US economy spurred demand for the greenback.

The kiwi traded at 85.32 US cents at 5pm in Wellington from 85.34 cents at the close of trading in New York last week. It traded at 85.31 cents at 8am and 85.27 cents yesterday. The trade-weighted index was little changed at 79.96 from 79.90 yesterday and 79.81 at last week’s close.

A BusinessDesk survey of nine traders and strategists on Monday predicted the local currency would trade between 83.40 US cents and 86.50 cents this week. Six predicted the kiwi would decline this week, one expected an increase and two saw it largely unchanged.

The Fed yesterday signalled US interest rates may rise faster than traders were anticipating as the world’s largest economy improves. In her first meeting as chair Janet Yellen told a press briefing rates might rise about six months after the asset purchase programme ended.

While the Fed’s moves were positive for the greenback, New Zealand’s currency held up with local data affirming the strength of the economy, which grew 0.9 percent in the three months ended Dec. 31. Government figures today showed annual inbound net migration at a decade high, while ANZ data showed upbeat consumer confidence.

“There’s nothing to suggest the New Zealand side of the story is going to look weak,” said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. “That should keep the kiwi in demand on any dips.”

Traders will be watching early manufacturing indicators next week in China, Europe and the US for leads on how the global economy is tracking.

The local currency traded at 87.31 yen at 5pm in Wellington from 87.26 yen yesterday and fell to 94.17 Australian cents from 94.54 cents. It gained to 61.90 euro cents from 61.64 cents yesterday, and increased to 51.67 British pence from 51.54 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news