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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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