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


NZ dollar holds gains ahead of Yellen appearances

NZ dollar holds gains as Yellen appearances stoke expectations of more on US rates

April 14 (BusinessDesk) – The New Zealand dollar held its gains of last week against the greenback before public statements by Federal Reserve chair Janet Yellen amid speculation she may clarify the central bank’s view on the start of any interest rate hikes in the US.

The kiwi traded at 86.81 US cents at 5pm in Wellington, little changed from the start of the day or the Friday close in New York. It was at 86.37 cents on Friday in Wellington. The trade-weighted index was little changed from 8am at 80.45, up from 80.02 on Friday.

The New Zealand dollar surged to a three-year high after the release last week of minutes of the Fed’s last policy meeting, which showed policy makers were concerned that projections for an interest rate rise were overstated and could be misconstrued by the market.

Yellen is scheduled to present her opening remarks by video conference to the Financial Markets Conference in Georgia tomorrow and deliver a speech on monetary policy and the economic recovery on Wednesday in New York.

“There’s a good chance of some elaboration (on the minutes) and a bit of backtracking on that, some softening of stance,” said Imre Speizer, senior market strategist at Westpac Banking Corp. That “might just pull the US dollar back a teeny bit and keep the kiwi up at these levels.”

Speizer expects the New Zealand dollar to trade in a range of 86.20 US cents to 87.40 cents in the next 24 hours.

For the week, the local currency may trade between 85.30 US cents and 87.80 cents, according to a BusinessDesk survey of 10 traders and strategists. Four predict the kiwi will fall this week, while one expects it to gain and five see it largely unchanged. It recently traded at 86.75 US cents.

Key data out of New Zealand this week will be the consumers’ price index, which is expected to show annual inflation rose at a 1.7 percent rate in the first quarter, the fastest pace since the fourth quarter of 2011. If inflation comes in as expected it should keep intact expectations that the Reserve Bank will raise the official cash rate a quarter point to 3 percent next week, which will be broadly supportive for the currency.

The kiwi traded at 62.64 euro cents from 62.70 euro cents at 8am in Wellington and from 62.16 cents at 5pm on Friday. It traded at 92.39 Australian cents from 92.43 cents at the start of the day and 92.09 cents on Friday.

The kiwi was at 51.86 British pence, up from 51.50 pence on Friday and traded at 88.22 yen, down from 87.77 yen on Friday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news