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


NZ dollar climbs to six-week high as commodities gain

NZ dollar climbs to six-week high, following commodity prices higher

By Paul McBeth

Oct. 7 (BusinessDesk) - The New Zealand dollar rose to a six-week high, extending gains after another increase in milk product prices at the latest GlobalDairyTrade auction, and higher commodity prices across the board.

The kiwi climbed as high as 65.61 US cents, the highest since Aug. 25, trading at 65.88 cents at 5pm in Wellington from 65.41 cents at 8am and 64.99 cents yesterday. The trade-weighted index advanced to 71.17 from 70.51 yesterday.

The Dollar Index, a measure of the greenback against a basket of currencies, fell to a two-and-a-half week low as the prospect of lower US interest rates for longer stoked demand for risk-sensitive assets.

Commodity prices rose, with Brent crude oil gaining 0.8 percent to US$52.35 a barrel, and the average winning price across all dairy products gained 9.9 percent to US$2,834 at the latest GDT event. Milk product prices had tumbled with other commodity prices in recent months, and their recovery over the past two months has eased concerns it would slow local economic growth.

Kiwi and Aussie and commodity currencies in general have quite well supported by the uplift in the crude oil price," said James Davies, senior foreign exchange dealer at OMF in Auckland. "Adding into the mix is the speculative positioning in which is seeing a net long position in the kiwi for the first time in a long time," he said, referring to the practice of investors betting an asset will appreciate.

OMF's Davies said the kiwi was also being supported by institutional funds who saw asset prices in emerging markets and across Asia Pacific as being cheap after the recent declines in their respective currencies.

New Zealand's two-year swap rate increased one basis point to 2.69 percent, and the 10-year swap was unchanged at 3.5 percent.

The kiwi rose to 91.68 Australian cents from 91.28 cents yesterday when it slipped against its trans-Tasman counterpart after the Reserve Bank of Australia was more upbeat than investors were expecting when keeping the target cash rate at 2 percent.

The local currency rose to 4.1854 Chinese yuan at 5pm in Wellington from 4.1301 yuan yesterday in the final day of China's Golden Week holiday, and gained to 78.96 yen from 77.61 yen. It advanced to 58.38 euro cents from 58.11 cents yesterday, and increased to 43.16 British pence from 42.86 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Statistics: Consents Remain At Record Levels
There were 47,715 new homes consented in the year ended October 2021, up 26 percent compared with the year ended October 2020, Stats NZ said today. "The year ended October 2021 marks another record for the annual number of new homes consented,” construction statistics manager Michael Heslop said... More>>

Foodstuffs: New World & Four Square Trial NZ’s First Grocery Delivery Offer With Uber Eats

New World & Four Square have partnered with Uber Eats to unlock the first grocery offering available on the platform in Aotearoa. For New World and Four Square it’s yet another way to put New Zealanders first, particularly with those inevitable last-minute grocery needs... More>>

Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>