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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news