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

 


NZ dollar little changed, eschews risk aversion

NZ dollar little changed as yield advantage offsets risk aversion

By Paul McBeth

Aug. 11 (BusinessDesk) - The New Zealand dollar was little changed as the currency's relatively attractive yield helped underpin the currency in the face of heightened risk aversion among investors.

The kiwi traded at 84.67 US cents at 5pm in Wellington from 84.60 cents at 8am, and 84.56 cents on Friday in New York. The trade-weighted index edged up to 79.39 from 79.27 last week.

New Zealand's currency has been a favourite among investors this year after a series of interest rate increases boosted its yield advantage over its peers. The yield on 10-year New Zealand government bonds was recently at 4.25 percent, compared to 2.44 percent on 10-year US Treasuries or 1.05 percent on European government bonds. That advantage has limited the kiwi's 3.9 percent decline over the past month as falling commodity prices and heightened geopolitical tensions sap investors' appetite for risk-sensitive assets.

"The kiwi seems to be somewhat immune to risk aversion," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. "It points to the long-term yield advantage of New Zealand."

ANZ's Tuck said he expects the kiwi will eventually grind lower as the US economic recovery gathers pace, and stokes demand for the greenback.

New Zealand government figures today showed retail spending on electronic cards rose in July after a survey last month showed increased consumer confidence.

A BusinessDesk survey of eight traders and strategists predicts the kiwi will probably trade between 83 US cents and 86 cents this week. Four expect the kiwi will remain largely unchanged this week, while three said it may gain and one is picking a drop.

The local currency gained to 86.48 yen at 5pm in Wellington from 86.29 yen on Friday in New York, and increased to 91.22 Australian cents form 91.12 cents. It edged up to 63.18 euro cents from 63.05 cents last week, and was little changed at 50.44 British pence from 50.41 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news