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

 


NZ dollar rises to highest in more than six years vs. yen

NZ dollar rises to highest in more than six years against yen as investors bet on global recovery

By Tina Morrison

April 2 (BusinessDesk) – The New Zealand dollar touched a fresh 6 ½-year high against the yen as investors bet on the prospects for a global economy recovery.

The kiwi touched 89.91 yen overnight, the highest level since November 2007, and was trading at 89.67 yen at 8am from 89.54 yen at 5pm yesterday. The local currency touched a two-and-a-half year high of 87.01 US cents overnight, and slipped to 86.47 US cents at 8am from 86.72 cents yesterday.

Overseas equities advanced overnight, pushing the Standard & Poor's 500 Index to a record high, as the latest US manufacturing data showed that the US economic recovery remained on track. Improved prospects for the world’s largest economy buoyed investor sentiment about a global economic recovery and damped demand for safe haven investments such as the yen.

“Yen is a safe haven currency so when you have risk aversion it does well and when you have risk seeking it does badly,” said Imre Speizer, senior market strategist at Westpac Banking Corp. in New Zealand. “Yen has underperformed as equity markets have gone up. It’s not so much a Japanese fundamental story - it’s a global recovery story, and the US particularly is recovering very, very slowly but going steadily in the right direction.”

Speizer said the economic recovery trend was set to continue for the next couple of years.

In the US yesterday, the Institute for Supply Management's index increased to 53.7 in March from 53.2 a month earlier, a sign that the effects of the harsher-than-usual American winter are beginning to wear off. Of the 18 manufacturing industries, 14 reported growth in March, according to the report.

In New Zealand today, traders will be eyeing the March ANZ Commodity Price Index, scheduled for release at 1pm.

Prices dropped at this morning’s Fonterra Cooperative Group GlobalDairyTrade auction as volumes increased. The GDT price index dropped 8.9 percent to US$4,124 a tonne from US$4,563 per tonne two weeks ago, the fourth straight decline and the lowest since August 2012. Some 39,653 tonnes of product was sold, up from 39,008 tonnes two weeks ago

The New Zealand dollar was little changed at 93.53 Australian cents from 93.61 cents yesterday after the Reserve Bank of Australia kept its benchmark interest rate at 2.5 percent as expected. Today, Australia has data on first quarter job vacancies and building approvals for February scheduled for release at 1:30pm New Zealand time.

The kiwi slipped to 62.69 euro cents from 62.95 cents yesterday as traders weigh up whether the European Central Bank will ease policy when it meets tomorrow. The New Zealand dollar was little changed at 52 British pence from 52.03 yesterday. The trade-weighted index weakened to 80.78 from 80.94 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news