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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news