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


NZ dollar gains before OCR review

NZ dollar gains before OCR review even as Trump tax plan, Fed view lift greenback

By Jonathan Underhill

Sept. 28 (BusinessDesk) - The New Zealand dollar rose ahead of the Reserve Bank's interest rate review while many other currencies fell against the greenback on the prospects for US rate hikes and President Donald Trump's plan to slash taxes.

The kiwi dollar gained to 72.17 US cents as at 8am in Wellington from 72.09 cents late yesterday. The trade-weighted index rose to 76.11 from 75.85 yesterday.

Market bets on a Federal Reserve rate hike in December have increased to 72 percent, helped by what were taken as hawkish comments by chair Janet Yellen, who warned this week of the dangers of "persistently easy monetary policy". Meanwhile, Trump unveiled plans to overhaul US taxes, slashing the corporate rate to 20 percent from 35 percent and reducing the top tax rate to 35 percent from 39.6 percent, although he didn't set out how this would be achieved without driving up the US federal deficit. In New Zealand, acting Reserve Bank governor Grant Spencer is expected to keep the official cash rate unchanged at 1.75 percent.

"USD strength was a feature overnight against all and sundry excluding the NZD," said Cameron Bagrie, chief economist at ANZ Bank New Zealand, in a note. With the OCR review it is "no change expected and a very balanced view on the outlook."

The US dollar was also helped by figures showing durable goods orders rose a greater-than-expected 1.7 percent in August.

The kiwi rose to 61.42 euro cents from 61.14 cents late yesterday and gained to 53.86 British pence from 53.63 pence. It rose to 81.39 yen from 80.99 yen, advanced to 91.81 Australian cents from 91.52 cents and gained to 4.7928 yuan from 4.7814 yuan.



© 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>>