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

 


NZ dollar gains after record February trade surplus

NZ dollar gains as record February trade surplus affirms local growth story

By Paul McBeth

March 27 (BusinessDesk) - The New Zealand dollar rose after a record trade surplus for the month of February fuelled optimism about local economic growth, which has tipped the Reserve Bank into a tightening cycle to head off the threat of future inflation.

The kiwi rose to 86.25 US cents at 5pm in Wellington from 85.95 cents at 8am and 85.87 cents yesterday. The trade-weighted index advanced to 80.43, matching a post-float record it reached last week, from 80.16.

New Zealand’s posted a trade surplus of $818 million in February, a record for that month, and beating economists’ expectations of $600 million. The country has been benefitting from rapid gains in exports of dairy, meat and logs to China, which now accounts for about 21 percent of New Zealand’s international sales. The trade data added to upbeat view of New Zealand’s economy, which is forecast to grow at an annual pace of 3 percent this year.

That momentum prompted the Reserve Bank to lift the official cash rate 25 basis points to 2.75 percent this month, and signal a further 2 percentage points of increases over the coming two years as governor Graeme Wheeler looks to keep inflation in check.

“The trade balance was a rip-snorter,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional. “Nothing bad is coming out of New Zealand at the moment, and it’s a continuation of the theme” which has supported the kiwi, he said.

Ongoing concerns about the tensions between the Group of 7 leading industrialised nations and Russia fuelled demand for Japan’s yen, typically a favourite among investors looking to reduce the risk of their holdings, which strengthened to 102.03 per US dollar from 102.28 yesterday. The kiwi gained to 88 yen at 5pm in Wellington from 87.83 yen.

The local currency pared a decline against its Australian counterpart, trading at 93.35 Australian cents from 93.59 cents yesterday. It increased to 62.58 euro cents from 62.43 cents yesterday, and was little changed at 52.01 British pence from 51.94 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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