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

 


NZ dollar rises on optimism about Ukraine ceasefire

NZ dollar rises as optimism about Ukraine ceasefire increases allure of riskier currencies

By Tina Morrison

Sep. 4 (BusinessDesk) - The New Zealand dollar advanced on optimism a ceasefire could be agreed in Ukraine, improving the outlook for global growth and increasing the allure of riskier currencies.

The kiwi rose to rose to 83.27 US cents at 8am in Wellington from 82.94 cents at 5pm yesterday. The trade-weighted index edged up to 78.73 from 78.63 yesterday.

Investors' appetite for riskier currencies, such as the kiwi, increased after reports Russian and Ukrainian leaders had agreed on steps toward a cease-fire in eastern Ukraine, helping ease tensions that have stoked demand for safer assets. Russian president Vladimir Putin is reported to have outlined a peace plan for eastern Ukraine after agreeing with his Ukrainian counterpart Petro Poroshenko on steps toward a cease-fire in the conflict that has raged for more than five months. The two sides have planned talks in Minsk on Friday.

"Anything that has happened overnight is really do with events of a potential ceasefire originating in Ukraine," said Stuart Ive, senior dealer, foreign exchange, at OMF. "The market has taken it that if they do declare a ceasefire it's going to be good for global growth so we have seen a big swing around the US dollar with risk coming back on very quickly."

Kiwi has bounced off a solid support level of 82.85 US cents, Ive said.

Today, state-owned Quotable Value releases its latest monthly data on New Zealand house prices

The New Zealand dollar fell to 89.08 Australian cents from 89.37 cents yesterday as the Australian dollar strengthened on speculation the Reserve Bank of Australia won't cut interest rates further following better than expected second-quarter GDP data yesterday. Today, investors will be focused on Australian retail sales and trade balance data.

The kiwi advanced to 63.34 euro cents from 63.18 cents yesterday ahead of the European Central Bank meeting today where no change in policy is expected. Traders will be eyeing any comments from ECB president Mario Draghi about the prospects of further stimulus to boost inflation.

The local currency gained to 50.58 British pence from 50.40 pence ahead of the Bank of England meeting today where no change to policy is expected.

The New Zealand dollar was unchanged at 87.23 yen ahead of the Bank of Japan meeting today where no change is expected.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news