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

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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