Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


NZ dollar may rise on commodities, weaker yen

NZ dollar may rise on stronger commodities, weaker yen

By Paul McBeth

Feb. 20 – The New Zealand dollar may push higher as commodity prices bounce back from multi-year lows, and the yen weakens on concern Japan, the world’s second-biggest economy, will delay its stimulus plans.

The Reuters Jeffries CRB index, a broad measure of the price of raw materials, rose 1.3% as demand for oil and copper picked up. Figures this week showed Japan’s fourth-quarter gross domestic product fell 3.3%, while Finance Minister Shoichi Nakagawa resigned, sparking concern fiscal spending plans will be delayed.

“The yen has lost its lustre” with the bleak outlook for the Japanese economy, said Danica Hampton, currency strategist at Bank of New Zealand. “The risk to the kiwi is that it may nudge a little higher.”

The kiwi fell to 51.32 U.S. cents from 51.41 cents yesterday and rose to 48.39 yen from 48.07. It dropped to 79.42 Australian cents from 79.51 cents yesterday, and declined to 40.49 euro cents from 40.65 cents. The yen was weaker against the U.S. dollar, which is buying 94.37 yen, up from 93.32 yesterday.

Hampton said the New Zealand dollar may trade between 51 and 52 U.S. cents today, and if it manages to break the topside, may rise as high as 52.50 cents.
Limiting the kiwi advance, figures showed continuing jobless claims in the U.S. rose to just under five million in the weak ended Feb. 8. Weak fourth quarter sales for Hewlett-Packard Co., the world’s largest maker of personal computers, contributed to a turnaround in U.S. stocks, with the Dow Jones Industrial Average down 0.7%.

National Bank of New Zealand Regional trends survey indicator, which breaks down economic growth by region, fell 0.1% in the fourth quarter, its fourth consecutive decline in the series, according to a report yesterday. The fall was smaller than the previous quarter, and Hampton said “it would seem to limit the odds of New Zealand’s Q4 GDP being as shockingly bad as we’ve already reported for most other countries”. The BNZ forecasts a contraction of 0.6% for the fourth quarter GDP, which will be announced on Mar. 27.

(Businesswire)

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Scoop Is Crowd Funding: Help Scoop.co.nz To Fly In 2015

Scoop is NZ's oldest and largest independent online news service. We have described ourselves as fiercely independent for more than a decade and we would like to stay that way... By making Scoop’s connection to the public and contributors more explicit we hope to achieve the level of support and sustainability that will enable Scoop to fly as a community asset. More>>

ALSO:

McBeth On The Cricket World Cup: It's How They Handle Fan Pressure

Brendon McCullum's team has achieved impressive results in the lengthy buildup to the contest and they deserve to be among the favoured teams, but... Their results need to be kept in perspective and fans should get a much better idea of the Black Caps chances when they face England in the capital on Friday. More>>

Keith Rankin: Contribution Through Innovation

The economic contribution of businesses and people is often quite unrelated to their taxable incomes. EHome, as a relatively new company, may have never earned any taxable income. Its successors almost certainly will earn income and pay tax. Yet it was eHome itself who made the biggest contribution by starting the venture in the first place. More>>

ALSO:

A Public Conversation: Reinventing News As A Public Right

Alastair Thompson: Oh how the mighty have fallen. Once journalism was possibly a noble profession, though that is certainly now, to quote our Prime Minister, a 'contestable' notion. It certainly seemed at least a little noble when I joined the ranks of reporters in 1989 . But ... More>>

ALSO:

Syriza Win Greek Election: The Rumblings Of The Left

Binoy Kampmark: The left – and by this, the genuine, progressive, unmanagerial left – is getting noisy. The Greek elections are upon us, with the similar challenges being played out from 2012. There are fears of Grexit – a heavy breathing departure from the eurozone that will do everything to rattle the central currency mechanism that has been taking a battering... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news