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

 


NZ dollar gains as UK, US holidays keep trading thin

NZ dollar gains in quiet trading as investors see decline as opportunity to buy

By Tina Morrison

May. 27 (BusinessDesk) - The New Zealand dollar advanced in quiet holiday trading as some investors saw the currency's recent decline as an opportunity to buy the local currency.

The kiwi rose to 85.48 US cents at 8am in Wellington from 85.34 cents at 5pm yesterday. The trade-weighted index gained to 79.81 from 79.73 yesterday.

Currency markets were illiquid overnight with the US markets closed for Memorial Day holiday and UK banks closed for the nation's May Day holiday. The New Zealand dollar edged up against its major counterparts as some investors bet its decline of about three quarters of a cent the past week made it an attractive level to buy. The kiwi remains attractive to overseas investors,because of its higher yield as the nation's central bank is expected to hike rates for a third time this year at its next review on June 12.

"It's probably a little bit of a correction in an illiquid market," said Peter Cavanaugh, client adviser at Bancorp Treasury Services. "With US and UK markets closed last night, you have got the world's two biggest FX markets closed and there's been no news."

Cavanaugh said currency markets may see more action tomorrow with Fonterra Cooperative Group expected to pull back the level of its payout to dairy farmers. Today, the New Zealand Institute of Economic Research is scheduled to publish its latest quarterly predictions.

Later this week, traders will be eyeing the release of first quarter growth figures in the US on Thursday night.

The New Zealand dollar edged up to 50.72 British pence from 50.68 pence yesterday, to 92.42 Australian cents from 92.37 cents, and to 87.07 yen from 86.96 yen as Bank of Japan Deputy Governor Kikuo Iwata said excessive gains in the currency are bad for the nation’s exports.

The kiwi was little changed at 62.60 euro cents from 62.65 cents yesterday after European Central Bank president Mario Draghi told a forum in Portugal the bank must be particularly watchful for any negative price spiral in the euro zone, and that it was not resigned to inflation being too low for too long.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news