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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news