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


NZ dollar climbs above 77 cts, fourth-best performer in 2010

NZ dollar climbs above 77 US cts, fourth-best performer in 2010

By Paul McBeth

Dec. 31 (BusinessDesk) – The New Zealand dollar climbed above 77 U.S. cents for the first time since November as strong commodity prices underpinned support for riskier, or higher-yielding, assets, leaving the kiwi poised to be the fourth-best currency this year.

The kiwi, Australian and Canadian dollars, viewed as commodity currencies, were bolstered by more strength in copper, aluminium and lead prices as investors look for bigger returns in thin trading during the holiday season. The kiwi’s 6.7% gain is the fourth biggest this year behind the yen, Australian dollar and Swiss franc. The kiwi hit a 31-year high against the pound, touching 50.09 pence, after analysts were more pessimistic about the outlook for the U.K. economy in the face of its austerity measures.

“The commodity currencies have had the tail-wind of a weak U.S. dollar and high commodity prices” over the Christmas and New Year period, said Mike Jones, strategist at Bank of New Zealand. “The moves have been overstated by thin liquidity trading in the market at the moment, and when people return from holiday, we’ll see the currencies revert back to fundamentals.”

The kiwi climbed to 77.04 U.S. cents from 76.76 cents yesterday, and rose to 68.95 on the trade-weighted index of major trading partners’ from 68.75. It advanced to 49.94 pence from 49.48 pence yesterday, and increased 75.82 Australian cents from 75.41 cents. It was little changed at 57.90 euro cents from 57.98 cents yesterday, and climbed to 62.85 yen from 62.51 yen.

Jones said the currency may trade between 76.60 U.S. cents and 77.30 cents today.

The commodity currencies pared some of their gains after upbeat American data buoyed the greenback, with jobless claims falling to a two-year low last week, while house sales rose in November.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>