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


NZ dollar holds above 74 cts after Bollard comment

NZ dollar holds above 74 US cts as Bollard returns to jawboning

By Paul McBeth

Nov. 11 (BusinessWire) – The New Zealand dollar held above 74 U.S. cents after central bank Governor Alan Bollard said the resilient currency has hindered an export-led recovery needed to rebalance the nation’s economy.

In the Reserve Bank’s Financial Stability Report, Bollard said the high currency was a threat to an improvement in the country’s current account deficit. He reiterated the New Zealand dollar needs to come down to help the economy restructure in a more sustainable way, and said it “needs to live more within its means to reduce its vulnerability to adverse developments in offshore markets.”

The kiwi dollar fell to 74.13 U.S. cents after the announcement from 74.28 cents immediately before the release. It traded at 73.99 cents in New York yesterday.

Equity markets in the U.S. and Europe clawed back gains after early losses following weak trade data in the U.K. and a fall in business confidence in Germany, while American insurer MBIA posted a loss. Fitch rating agency said the British economy was the most at risk of losing its AAA rating.

Danica Hampton, currency strategist at Bank of New Zealand, said the softness in global equity markets “helped take the sheen off the kiwi,” but she predicts it is still in an upward trend with the U.S. dollar looking “heavy.”

“There’s been an improvement in risk appetite and equity markets – it looks like the correction is over and the kiwi will march onwards and upwards,” she said.

The New Zealand dollar gained to 66.04 on the trade-weighted index, or TWI, a measure of the currency against a basket of five trading partners, from 65.89 yesterday and increased to 66.53 yen from 66.41 yen. It was little changed 79.77 Australian cents from 79.75 cents yesterday and edged higher to 49.50 euro cents from 49.37 cents. It slipped to 44.35 pence from 44.42 pence yesterday.

Hampton said the currency may trade between 73.75 U.S. cents and 74.65 cents today, with the release of Chinese data likely to underpin a bias to the topside of the range.

“If we see any weakness, we’ll buy on dips, as the kiwi should go up on the Chinese data,” she said.

Chinese officials will release industrial production figures, retail sales and its trade balance this afternoon, while Westpac’s consumer confidence survey also comes out today.


© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>


Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>