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


NZ dollar gains vs. euro after weaker German inflation

NZ dollar gains vs. euro after weaker German inflation adds to ECB pressure

By Jonathan Underhill

April 30 (BusinessDesk) - The New Zealand dollar gained against the euro after weaker-than-expected German inflation, stoking speculation prices may also be weaker across the Eurozone and adding to pressure on the European central Bank to act to weaken its currency.

The kiwi rose to 61.87 euro cents from 61.48 euro cents at 5pm in Wellington yesterday. The New Zealand dollar traded at 85.45 US cents, up from 85.25 cents yesterday.

Germany’s annual estimated harmonised consumer price index was at 1.1 percent, missing the 1.3 percent rate expected by economists. The figures from German statistics agency Destatis come a day before inflation data is released for the Eurozone, which may print weaker and add to calls for the ECB to act to drive down the euro.

“If the Eurozone number is weaker, I would expect the euro to come under immense pressure,” said Stuart Ive, senior adviser at OMF.

The ECB’s options could include moving to negative interest rates or quantitative easing though it may be two months before the central bank’s strategy is known, he said. Tensions in Ukraine have added to a mixed global picture for financial markets, he said.

In the New Zealand today, traders are awaiting dwelling consents for March and the ANZ Business Outlook for April, which will provide a further clue to company pricing intentions after consumer prices rose less than expected in the first quarter and gave the Reserve Bank les reason to rush at its tightening cycle.

The kiwi rose to 87.71 yen from 87.36 yen and was little changed at 92.18 Australian cents. It rose to 50.78 British pence from 50.69 British pence. The trade weighted index rose to 79.60 from 79.33.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news