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

 

NZ dollar jumps to two-week high

NZ dollar jumps to two-week high vs pound on Bank of England rates outlook

By Jonathan Underhill

Nov. 3 (BusinessDesk) - The New Zealand dollar gained to a two-week high against the pound after the Bank of England raised interest rates for the first time in more than 10 years but said further hikes would be gradual, a more dovish view than the market was expecting.

The kiwi rose to 52.94 British pence as at 8am in Wellington from 52.10 pence late yesterday. It traded at 69.14 US cents from 69.22 cents yesterday and the trade-weighted index was little changed at 73.23 from 73.22.

Policymakers at the BoE voted seven-two to increase its benchmark bank rate a quarter point to 0.5 percent, having cut the rate by that amount in the wake of the Brexit vote last year. The bank said members were unanimous that any further increases "will be at a gradual pace and to a limited extent."

The kiwi dollar has recovered some ground against the greenback after sinking to a 17-month low last week amid concern the policies of the new government may help keep interest rates lower for longer. Still, there are signs New Zealand inflation may be picking up. Reports that US President Donald Trump has selected Jerome Powell as the next chair of the US Federal Reserve, a candidate seen to favour only gradual rate hikes, and concern US tax cut plans will struggle to gain traction have weighed on the greenback.

The pound "was slammed after the BoE’s 'dovish hike' and the markets sees the US tax bill as a bit underwhelming, keeping the USD in check and helping nudge US Treasury yields lower," said Jason Wong, a currency strategist at Bank of New Zealand, in a note. "We think there’s room for the NZD to recover further as domestic political risks fade, with an eye on next week’s RBNZ MPS as an additional possible source of upward pressure."

The Reserve Bank releases its monetary policy statement on Nov. 9 and the review is expected to reflect a much weaker TWI track than it had been forecasting, which suggests more imported inflation, while figures this week showed wage pressure starting to stir.

With no scheduled economic news out of New Zealand today, traders are awaiting the release tonight on US employment figures. The Labor Department’s payrolls report is expected to show growth of 303,000 jobs in October, compared to a drop of 40,000 the month before. Total non-farm employment is expected to have increased by 312,000, according to economists polled by Reuters.

The kiwi slipped to 59.28 euro cents from 59.38 cents. It traded at 89.61 Australian cents from 89.59 cents and at 4.5579 yuan from 4.5664 yuan. It was little changed at 78.79 yen from 78.80 yen yesterday.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: