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

 


NZ dollar little changed as local rates attract investors

NZ dollar little changed as local rates attract investors, outshine weak Chinese manufacturing

By Paul McBeth

March 24 (BusinessDesk) - The New Zealand dollar was little changed as the relative attraction of rising interest rates outshone weak Chinese manufacturing figures.

The kiwi traded at 85.35 US cents at 5pm in Wellington from 85.40 cents at 8am and 85.32 cents on Friday in New York. The trade-weighted index was 79.94 from 79.91 last week.

The HSBC flash China manufacturing purchasing managers’ index was below expectations at 48.1 this month from a final reading of 48.5 in February, signalling a third month of contracting industrial production in the world’s second-biggest economy. The weak data sparked a short-lived sell-off in the New Zealand dollar, before support from investors keen on the local economic story and rising interest rates weighed in.

New Zealand’s Reserve Bank embarked on a tightening cycle this month, raising the official cash rate 25 basis points to 2.75 percent, and traders have priced in a 94 percent chance of another increase next month, according to the Overnight Index Swap curve.

“They’re most likely going to be raising rates another 25 basis points and that makes the kiwi look relatively attractive,” said Michael Johnston, senior trader at HiFX in Auckland. “The kiwi and Aussie seem to be attracting a bit of interest on dips that don’t last that long.”

Johnston said the biggest risk to the currency this week will come from any heightened tensions in Crimea, due to a light flow of data.

A BusinessDesk survey of nine traders and strategists predicts the local currency may trade between 84 US cents and 87 cents this week, from 85.40 cents at 8am. Three expect the currency to remain relatively unchanged, four expect it to gain and two say it could fall.

The local currency was little changed at 93.98 Australian cents at 5pm in Wellington 93.90 cents on Friday in New York, and increased to 87.74 yen from 87.23 yen. It was little changed at 61.83 euro cents from 61.86 cents last week, and traded at 51.76 British pence from 51.74 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news