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

 


NZ dollar rises to 7-week high vs. euro on ECB view

NZ dollar rises to 7-week high vs. euro as ECB seen easing monetary policy in June

By Tina Morrison

May 14 (BusinessDesk) – The New Zealand dollar rose to its highest in almost seven weeks against the euro on speculation the European Central Bank will ease monetary policy at its meeting next month.

The kiwi touched 63.17 euro cents early this morning, its highest level since March 28, and was trading at 62.98 cents at 8am in Wellington, from 62.72 cents at the 5pm market close yesterday. The local currency was unchanged at 86.30 US cents.

The euro was the worst performing major currency overnight after the ZEW German investor confidence gauge declined for a fifth consecutive month in May to its lowest level since January last year. Adding to declines in the euro, Dow Jones reported that the hawkish German central bank is now willing to back an array of stimulus measures by the European Central Bank next month if needed to fight low inflation.

“For years the Bundesbank has been the most trenchant opponent to extraordinary monetary policy measures,” Raiko Shareef, currency strategist at Bank of New Zealand, said in a note. “This reported shift in its mindset lends ECB president (Mario) Draghi considerable support if he decides to cut interest rates in June, or even engage in quantitative easing.”

Draghi kept the ECB’s interest rate at a record low last month but signalled the bank was ready to act at its next meeting, pending the latest inflation predictions. When inflation is too low, debt becomes harder to services and consumers may put off purchases in the hope that prices will fall.

The Bundesbank is willing to support a negative interest rate on bank deposits, long-term loans to banks at capped interest rates and ECB purchases of packaged bank loans if needed to boost inflation, Dow Jones reported on its Wall Street Journal site, citing a person familiar with the matter that it didn’t name.

In New Zealand today, traders are awaiting the Reserve Bank’s latest six-monthly Financial Stability Report, scheduled for release at 9am, which will be followed by a press conference. Governor Graeme Wheeler will also appear before the government finance select committee at midday to discuss the report.

First quarter retail sales data is released at 10:45am while the level of non-resident bond holdings will be published at 3pm.

The New Zealand dollar was little changed at 92.23 Australian cents from 92.22 cents yesterday following the Australian federal budget and weaker than expected Chinese data on industrial production, retail sales, home sales and investment.

The kiwi advanced to 51.29 British pence from 51.12 pence yesterday ahead of the Bank of England’s quarterly inflation report tonight where the central bank updates its forecasts.

The local currency edged up to 88.27 yen from 88.24 yen yesterday while the trade-weighted index gained to 80.32 from 80.21.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news