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

 


NZ dollar gains vs. euro after ECB prepares for stimulus

NZ dollar gains vs. euro after ECB signals it may introduce stimulus to counter deflation

By Tina Morrison

April 4 (BusinessDesk) – The New Zealand dollar advanced against the euro after European Central Bank president Mario Draghi signalled the bank was ready to take further steps to counter low inflation.

The New Zealand dollar advanced to 62.25 euro cents at 8am in Wellington from 62.09 cents at 5pm yesterday. The local currency edged lower to 85.38 US cents from 85.43 cents yesterday ahead of key US employment data which may show the world’s largest economy added the most number of jobs in a month since November.

The European common currency shared by 18 countries weakened after Draghi said quantitative easing, another rate cut, negative deposit rates and a narrower rate corridor were all discussed at the central bank’s monthly meeting where it kept interest rates unchanged at 0.25 percent. The ECB is concerned about continued low inflation after consumer prices held below 1 percent for a sixth month in March.

The latest statement “makes clear that the ECB is ready to step into unchartered waters if inflation continues to disappoint,” Raiko Shareef, currency strategist at Bank of New Zealand, said in a note. “The ECB’s governing council is now ‘unanimous in its commitment’ to use unconventional policy tools.”

Tonight, all eyes will be on the US employment data which is expected to show payrolls grew by 200,000 in March after a gain of 175,000 in February, Shareef said.

The New Zealand dollar weakened to 92.50 Australian cents, from 92.66 cents yesterday after Reserve Bank of Australia governor Glenn Stevens yesterday reiterated comments that there were encouraging signs of growth as the economy rebalances away from mining.

The kiwi advanced to 51.46 British pence from 51.34 pence after the UK’s services Purchasing Managers’ Index for March dropped for a fourth consecutive month to 57.6, lagging the 58.2 expected.

The local currency dipped to 88.70 yen from 88.81 yen yesterday. The trade-weighted index was little changed at 79.95 from 79.94 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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