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

 


NZ dollar rises to 3-week high on investor demand for yield

NZ dollar rises to 3-week high on investor demand for growth, yield

By Tina Morrison

May 5 (BusinessDesk) – The New Zealand dollar jumped to a three-week high as investors were lured to the nation’s higher growth and better yields.

The kiwi touched 86.82 US cents this morning, its highest level since April 15. The local currency was trading at 86.71 cents at 8am in Wellington, from 86.66 cents at the New York close and 86.27 cents at 5pm on Friday in Wellington. The trade-weighted index rose to 80.53 from 80.20 on Friday.

Investors favoured the local currency as the New Zealand economy outperforms its peers, as the first major central bank to hike rates following the global financial crisis. Investors pared back their exposure to the US dollar after data on Friday showed the US labour market isn’t as strong as initially suggested. Even though US employers added 288,000 workers in April, the labour participation rate fell as more Americans stopped job hunting and wage growth remained flat.

“There are some contradictory indicators as to the strength of the headline number,” said Sam Tuck, senior foreign exchange strategist at ANZ Bank New Zealand. “It’s not bad, it’s just not good enough. Kiwi remains in demand because it has both growth and yield in an environment of reasonably benign global economic growth. At the moment we are still the standout.”

ANZ expects the kiwi to trade between 86 US cents and 87.30 cents today.

Later today, traders will be eyeing reports on Australian monthly building approvals and job advertisements.

The New Zealand dollar gained to 93.22 Australian cents from 92.96 cents on Friday, increased to 62.43 euro cents from 62.23 cents, rose to 51.36 British pence from 51.08 pence and advanced to 88.60 yen from 88.31 yen.

Japanese banks are closed today in observance of Children’s Day.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news