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

 

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