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

 

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news