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

 


NZ dollar gains on lure of higher interest rates

NZ dollar gains on lure of higher interest rates

By Paul McBeth

April 8 (BusinessDesk) - The New Zealand dollar gained as volatility in equity markets failed to spill over into foreign exchange, and the kiwi remained an attractive buy on the prospect of higher interest rates later this month.

The kiwi rose to 86.30 US cents at 5pm in Wellington from 86.03 cents at 8am and 85.92 cents yesterday. The trade-weighted index advanced to 80.52 from 80.31.

Traders are pricing in a 96 percent chance of a rate hike at the Reserve Bank’s April 24 meeting, according to the Overnight Index Swap curve. New Zealand’s central bank began tightening monetary policy last month as a means to head off the threat of future inflation, putting the country at the front of the cycle compared to its global peers. That makes New Zealand rates attractive, with the yield on the 10-year government bond, at 4.63 percent, more than half a percentage point higher than its Australian equivalent.

“We’re going to get another rate hike in the next two weeks” which is still attracting investors, said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “The kiwi’s still got a bias to the topside.”

Still, ASB’s Kelleher said volatility in US stock markets didn’t feed into currency markets yesterday, and a diminished appetite for risk-sensitive assets could weigh on the kiwi.

New Zealand business confidence remained upbeat in the first quarter according to the New Zealand Institute of Economic Research’s quarterly survey of business opinion, with a net 52 percent of firms positive on the outlook for general business.

The kiwi gained to 92.87 Australian cents from 92.63 cents yesterday after the National Australia Bank monthly business survey showed weaker sentiment among firms.

The local currency rose to 88.83 yen from 88.57 yen yesterday after the Bank of Japan kept its monetary stimulus package unchanged at the conclusion of its two-day policy review, against expectations of an increase.

The kiwi was little changed at 62.78 euro cents from 62.71 cents yesterday, and traded at 51.92 British pence from 51.84 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news