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

 

NZ dollar gains vs euro on timing of ECB rate hikes

NZ dollar gains vs euro on timing of ECB rate hikes, falls vs greenback

By Jonathan Underhill

June 15 (BusinessDesk) - The New Zealand dollar rose against a broadly weaker euro after the European Central Bank said it may not hike interest rates until late 2019 while stronger US retail sales data also helped lift the greenback.

The kiwi dollar gained to 60.24 euro cents as at 8am in Wellington from 59.51 cents late yesterday. It fell to 69.78 US cents from 70.28 cents and the trade-weighted index slipped to 73.61 from 73.71.

The ECB said it would taper its bond-buying programme down to 15 billion euros a month in the fourth quarter from 30 billion euros a month currently in a move that broadly met market expectations. But it also said there were no plans to change interest rates until the Northern Hemisphere summer in 2019 - later than expected - and an announcement that was viewed as more dovish. Meanwhile, US retail sales excluding autos and fuel rose 0.8 percent in May, twice the pace expected, although the greenback's gains were tempered by renewed concerns about trade tariffs.

"Despite the ECB signalling an upcoming end to QE, the market has interpreted its new time-specific forward guidance dovishly and sent the euro packing," said Miles Workman, an economist at ANZ Bank New Zealand, in a note. The US retail sales data suggested "the US economy has well and truly bounded back following a softer winter-weather-induced patch earlier in the year."

The kiwi rose to 52.56 British pence from 52.46 pence yesterday after UK core retail sales for May jumped 1.3 percent, month on month, versus expectations for a 0.3 percent gain.

In New Zealand today, traders may focus on the manufacturing PMI report for May, while tonight brings US industrial production figures for May.

The kiwi rose to 93.24 Australian cents from 92.89 cents late yesterday, when figures showed the number of people employed in Australia rose by 12,000, undershooting an expected 19,000 increase. It fell to 77.19 yen from 77.40 yen and declined to 4.4645 yuan from 4.4936 yuan.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up 0.5%: GDP Growth Eases Slightly

Gross domestic product (GDP) rose 0.5 percent in the March 2018 quarter, Stats NZ said today. This followed a 0.6 percent increase in the December 2017 quarter. Growth in service industries more than offset a fall in construction activity. More>>

ALSO:

Baby Formula: Fonterra Satisfied With Beingmate's Response To Error

Fonterra Cooperative Group is satisfied Beingmate Baby & Child Food is taking the right steps to deal with a labelling issue after getting caught out in a widespread audit by Chinese regulatory authorities. More>>

ALSO:

Adjusted, A Deficit: Current Account Turns To Surplus

New Zealand's current-account turned to a surplus in the first quarter, bolstered by the services balance as tourism remained strong. More>>

ALSO:

Housing: Foreign Buyer Ban Gets Smoother Edges

Amendments to the government’s foreign buyer ban, if introduced, would give overseas investors more leeway to put money into New Zealand housing developments. More>>

ALSO:

Te Kuha: Govt Declines Application To Mine Conservation Land

An application to mine coal on public conservation land near Te Kuha in the Buller District has been declined, Minister of Conservation Eugenie Sage and Minister of Energy Resources Megan Woods announced today. More>>

ALSO: