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

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news