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

 


NZ dollar gains as Fonterra affirms milk price

NZ dollar gains as Fonterra affirms milk price, announces Chinese joint venture

By Paul McBeth

Aug. 27 (BusinessDesk) - The New Zealand dollar rose after Fonterra Cooperative Group affirmed its forecast milk price payout to farmers, and unveiled a $615 million joint venture with China's Beingmate.

The kiwi rose to 83.62 US cents at 5pm in Wellington from 83.24 cents at 8am and 83.41 cents yesterday. The trade-weighted index increased to 78.96 from 78.74 yesterday.

Fonterra today affirmed its 2015 forecast farmgate payout of $6 per kilogram of milk solids, and announced an Australian-based tie-up with Beingmate to produce infant formula for the Chinese market. The announcements eased investors' fears the world's biggest dairy exporter would announce more bad news amid falling local commodity prices.

"People were getting ahead of themselves with the market expecting a possibly negative announcement," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland. Still, "I wouldn't expect us to strengthen too much further - the trend is quite clear."

The US dollar rose to a 13-month high yesterday as upbeat consumer confidence and manufacturing reports stoked expectations the Federal Reserve will start raising interest rates sooner and faster than previously anticipated.

ANZ's Tuck said "everything is pointing to the US dollar being the currency of choice."

Government figures today showed New Zealand food prices fell on an annual basis in July, indicating the Reserve Bank might not have to hike interest rates again with fewer inflationary pressures creeping into the economy.

The local currency traded at 89.70 Australian cents from 89.75 cents yesterday, and increased to 86.95 yen from 86.63 yen. It advanced to 63.53 euro cents from 63.16 cents yesterday, and rose to 50.51 British pence from 50.27 pence.

(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