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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news