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


NZ dollar gains on signs of recovery in risk appetite

NZ dollar gains on signs of recovery in risk appetite

By Rebecca Howard

April 3 (BusinessDesk) - The New Zealand dollar pared some of its overnight losses against the greenback as risk aversion eased slightly in Asian trading although investors remain jittery about a possible global trade war.

The kiwi dollar traded at 72.26 US cents from 72.17 US cents as at 8am in Wellington and 72.34 cents late yesterday. The trade-weighted index was at 74.20 from 74.19.

The kiwi eased overnight after China retaliated over US tariffs, sapping risk appetite. US equity markets also sold off sharply as China said it would impose tariffs of up to 25 percent on a list of 128 products imported from the US.

ANZ Bank New Zealand chief economist Sharon Zollner said "it wasn't surprising overnight to see the New Zealand dollar take a bit of a hit. We have been saying for quite some time that its vulnerable to a bit of a turn in global liquidity and more generally in risk aversion and we did see a risk-off move," she said.

She said it has bounced back a bit in Asian trading "consistent with a bit of a bounce in US equity futures, as some may see the move as a bit overdone."

Westpac Banking Corp market strategist Imre Speizer said the kiwi "is still following the US dollar more than anything else." He noted, however, that while risk appetite has ticked up a bit on the day and the S&P futures have "bounced a bit, they are still lower than they were 12 hours ago."

The kiwi traded at 93.94 Australian cents from 94.16 cents late yesterday as the Aussie benefited from the tick up in risk appetite slightly more than the kiwi did. He said there was little market reaction after the Reserve Bank of Australian kept rates on hold at a record low 1.50 percent and published a statement that was in line with expectations.

The New Zealand dollar fell to 76.55 yen from 76.89 yen late yesterday and traded at 58.70 euro cents, unchanged from yesterday and rose to 5.5428 yuan from 4.5376 yuan. It declined to 51.39 British pence from 51.59 pence yesterday.

New Zealand's two-year swap rate rose 1 basis point to 2.22 and the 10-year swap rate rose two basis points to 3.06 percent.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>


Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>


IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>


Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>


Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>