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

 


NZ dollar jumps to 3-week high against euro before MPS

NZ dollar jumps to 3-week high against euro ahead of expected RBNZ rate hike

By Tina Morrison

June 11 (BusinessDesk) - The New Zealand dollar rose to a three-week high against the euro as investors were lured by the higher yield available in New Zealand, where the central bank is expected to hike interest rates tomorrow, while the European Central Bank last week cut rates.

The kiwi touched 62.95 euro cents, and was trading at 62.91 cents at 8am in Wellington from 62.54 cents at 5pm yesterday. The local currency advanced to 85.21 US cents from 84.99 cents yesterday.

The European Central Bank last week cut its key deposit rate to negative and introduced further stimulus in an attempt to bolster economic growth and ward off the threat of deflation.

The central bank chiefs of Finland and Slovakia, who both sit on the ECB's 24-member governing council, reiterated that the bank could still do more to support the euozone economy following last week's move. That contrasts with the Reserve Bank of New Zealand, which is expected tomorrow to raise interest rates for a third time and signal further hikes are in the pipeline to head off inflation from a resurgent economy.

"Strength in the New Zealand dollar relative to its European peers was the most notable theme on the crosses overnight," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "All eyes will be on the RBNZ's meeting tomorrow morning. We suspect the RBNZ will show sufficient commitment to its rate hiking process to extend the near-term bounce in the NZD/USD."

The British pound appeared to have been dragged down alongside the euro, Martin said.

The New Zealand dollar touched a two-week high of 50.89 British pence, from 50.55 pence yesterday ahead of a report on the UK's unemployment rate for April.

Today in New Zealand, data is released on electronic card spending for May at 10:45am.

The local currency edged up to 90.90 Australian cents from 90.82 cents yesterday ahead of a report on Australian consumer confidence today. A report on Australian business confidence yesterday showed the measure held steady following the nation's budget.

The kiwi advanced to 87.21 yen from 86.91 yen yesterday. The trade-weighted index gained to 79.54 from 79.26 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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