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

 


NZ dollar TWI at post-float record on upbeat Fitch outlook

NZ dollar TWI at post-float record on upbeat Fitch outlook

By Suze Metherell

July 9 (BusinessDesk) - The New Zealand dollar rose to a post-float high on a trade weighted basis after a more upbeat outlook from credit rating agency Fitch Ratings attracted investors seeking bigger returns.

The trade-weighted index climbed to 81.72 at 5pm in Wellington from 81.51 yesterday. The local currency was trading at 87.93 US cents, from 87.83 cents at 8am this morning and up from 87.63 cents at 5pm yesterday.

The kiwi rose to a three year-high against the greenback overnight after Fitch affirmed the New Zealand's AA rating and upgraded the outlook to positive from stable. The currency is now in reach of breaching the post-float record of 88.40 US cents as New Zealand’s rising interest rates cause a resurgence in the carry trade, where investors borrow cheaply in their home currency to invest in higher yielding currencies such as the kiwi dollar.

"Fitch was the catalyst for that particular jump higher but overnight there was a general uptrend for both Aussie and kiwi and a whole bunch of emerging market currencies - the big theme at play still is one where the carry trade reigns supreme," said Raiko Shareef, a currency strategist at Bank of New Zealand. "It peaked its head above 88 cents - it's still a struggle for the kiwi to break that level in any significant fashion, it keeps on testing it."

The Federal Reserve will release minutes for its June meeting on Wednesday in Washington. Traders will be looking for any insight into the central bank's view on the world's largest economy, particularly around the state of employment and whether data shows enough pick up in the US job market, said Shareef. Some investors are speculating the stronger employment data will prompt the Fed to hike interest rates sooner than expected.

The New Zealand dollar rose to 93.57 Australian cents from 93.35 yesterday. Traders will be watching tomorrow's employment figures across the Tasman, where unemployment has been static at 5.8 percent for the past three months. Any significant changes is likely to weigh on the TWI owing to the Australian dollar's weight in the index.

The kiwi increased to 64.56 euro cents from 64.41 cents yesterday, gained to 51.32 British pence from 51.16 pence and was little changed at 89.34 yen from 89.21 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news