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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

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:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news