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


REPEAT: NZ dollar reaches 6-month high as QE3 weighs on USD

REPEAT: NZ dollar jumps to 6-month high as QE3 weighs on greenback, stokes equity rally

(Adds dropped word in third paragraph)

By Paul McBeth

Sept. 14 (BusinessDesk) - The New Zealand dollar climbed to a six-month high in local trading after the Federal Reserve's programme to print more money weighed on the greenback while stoking a rally in global equity markets.

The kiwi rose to 83.45 US cents at 5pm in Wellington from 83 cents at 8am and 82.19 cents yesterday. The trade-weighted index rose to 73.67 from 72.86 yesterday, and is heading for a weekly gain of 2.2 percent. The kiwi is heading for a 2.8 percent weekly gain against the greenback.

Stocks across Asia followed US and European markets higher after Fed chairman Ben Bernanke unveiled an open-ended plan to buy $40 billion of mortgage-backed securities a month in a bid to revive flagging growth in the world's biggest economy.

Asia-wide sentiment was bolstered after Standard & Poor's upgraded South Korea's sovereign credit rating one notch to A-plus amid easing political tensions with its neighbours. Australia's S&P/ASX 200 index was up 1.3 percent in afternoon trading, Japan's Nikkei 225 index gained 2.1 percent, Hong Kong's Hang Seng index was up 2.7 percent and Korea's Kopsi index advanced 2.8 percent.

"The kiwi is standing in front of a freight train at the moment," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. "The kiwi did quite a lot of work between 83 and 84 US cents and there's quite strong resistance there."

The New Zealand currency's strength come a day after the Reserve Bank kept the official cash rate at 2.5 percent, and pushed out its forecast track for the 90-day bank bill rate, seen as a proxy for the benchmark interest rate.

The Bank of Korea unexpectedly kept its seven-day repurchase rate at 3 percent yesterday, and Bank Indonesia also held its reference rate unchanged at a record-low 5.75 percent. The kiwi climbed to 932.5 Korean won from 927.3 won yesterday, and advanced to 7952.19 Indonesian rupiahs from 7873.12.

The New Zealand dollar rose to 78.84 Australian cents from 78.39 cents yesterday and increased to 51.49 British pence from 50.97 pence. The kiwi climbed to 64.04 euro cents from 63.55 cents and advanced to 64.75 yen from 63.85 yen yesterday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Airport: North American Touch Downs Make AA Most Connected In Australasia
The return of American Airlines, the world’s largest airline, announced today has cemented Auckland Airport’s title as the Australasian airport with the most non-stop connections to the United States and Canada... More>>

Reserve Bank: Monetary Conditions Tighten By More And Sooner

The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 2.0 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability... More>>

The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>

Kiwibank: Savers To Benefit From Higher Returns Following OCR Rise

Following market movements Kiwibank is pleased to increase the interest rate and rates of return on its savings accounts... More>>

Fonterra: Provides 2022/23 Opening Forecast Farmgate Milk Price & Business Performance Update
Fonterra today announced its 2022/23 opening forecast Farmgate Milk Price and provided an update on its third-quarter performance... More>>

Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>