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

 


NZ dollar gains as Russia-Ukraine tensions take centre stage

NZ dollar gains as Russia-Ukraine tensions take centre stage in data-light week

By Paul McBeth

March 25 (BusinessDesk) - The New Zealand dollar rose as investors keep tabs on the tensions between Russia and Ukraine and their possible spillover into broader markets, in a week where there’s little economic data to drive sentiment.

The kiwi increased to 85.53 US cents at 5pm in Wellington from 85.39 cents at 8am and 85.37 cents yesterday. The trade-weighted index was 79.90 from 79.95 yesterday.

The leaders of the world’s seven leading industrialised nations, known as the G7, have been meeting in the Hague to discuss possible sanctions against Russia, which annexed the Crimean Peninsula this month while saying it won’t make any land-grabs against Ukraine. Geo-political tensions have occupied investors, with a small flow of hard economic data this week. The G7 leaders plan to boycott a G8 summit in Sochi in June and will impose stricter sanctions on Russia if it makes more moves against Ukraine.

“What would directly affect us would be an escalation in the situation in Russia and Ukraine, but at this moment in time it doesn’t appear to be happening and I would expect risk to come on,” said Stuart Ive, senior client adviser at OMF in Wellington. “The kiwi may creep a little higher this week, but that’s very subject to any further developments from Russia.”

New Zealand’s economic prospects and bias to rising interest rates make the kiwi an attractive prospect for investors seeking a higher yield, and Ive said he wouldn’t expect major institutions to shift their asset allocations away from the local currency when they reset the weightings at the end of quarter on Monday.

“The kiwi economy continues to march on and many people point out it’s basically the sweet spot,” Ive said.

Traders will keep tabs on a speech by Reserve Bank of Australia deputy governor Philip Lowe in Hong Kong entitled ‘Opportunities and Challenges for Market-based Financing’, as investors grow more upbeat about the prospects for the Australian economy. The local currency fell to 93.55 Australian cents at 5pm in Wellington from 93.97 cents yesterday.

It traded at 87.44 yen from 87.43 yen yesterday, and increased to 61.83 euro cents from 61.70 cents. It edged up to 51.85 British pence from 51.76 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news