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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


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>>


International 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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news