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

 


NZ dollar rises as terms of trade hold at 40-year high

NZ dollar rises as terms of trade hold at 40-year high

By Paul McBeth

Sept. 1 (BusinessDesk) - The New Zealand dollar edged up after government figures showed the nation's terms of trade stayed at a 40-year high in the second quarter as a stronger currency provided cheaper imports and offset the impact of falling commodity prices.

The kiwi rose to 83.73 US cents at 5pm in Wellington from 83.58 cents at 8am and 83.59 cents on Friday in New York. The trade-weighted index increased to 79.09 from 78.96 last week.

New Zealand's terms of trade, which measures the quantity of imports the country can buy with a set amount of exports, rose 0.3 percent in the three months ended June 30, beating expectations for a 2.3 percent fall. New Zealand's currency has come under pressure in recent months as falling dairy prices, the nation's biggest export, weighed on the outlook for economic growth.

"The terms of trade were certainly better than expected, and enough to give the kiwi a little bit of a nudge," said Stuart Ive, senior dealer foreign exchange at OMF in Wellington. "Any rallies in the kiwi against the US dollar for the time being appear to be somewhat limited to the upside."

The strong local data came against a backdrop of dwindling risk appetite in the global market as tensions mount between Russia and western nations over the sovereignty of Ukraine. Russian president Vladimir Putin yesterday criticised European leaders for supporting Ukraine and said talks on the conflict should include the issue of ‘statehood’ in eastern Ukraine, suggesting he is unlikely to back down.

The kiwi increased to 63.78 euro cents from 63.63 cents on Friday in New York.

Chinese manufacturing figures today missed expectations, with the official purchasing managers' index at 51.1 in August, and the HSBC flash PMI at 50.2. China is New Zealand and Australia's biggest trading partner. The kiwi rose to 89.61 Australian cents from 89.47 cents on Friday, and ahead of tomorrow's Reserve Bank of Australia policy review, which is expected to keep the target cash rate at 2.5 percent.

The local currency gained to 87.23 yen at 5pm in Wellington from 86.98 yen last week, and traded at 50.44 British pence from 50.36 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:


Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news