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

 

NZ dollar gains as Fed's Clarida backs gradual US rate hikes

NZ dollar gains as Fed's Clarida backs gradual US rate hikes; RBNZ looms


By Paul McBeth

Nov. 28 (BusinessDesk) - The New Zealand dollar gained as Federal Reserve vice chair Richard Clarida backed the central bank's gradual approach to raising interest rates, and ahead of the Reserve Bank's six-monthly report on financial stability.

The kiwi increased to 67.87 US cents as at 8am in Wellington from 67.64 cents yesterday, staying within recent ranges. The trade-weighted index advanced to 74.32 from 73.96.

The yield on 10-year US Treasuries fell 2 basis points to 3.5 percent after Clarida said risks to the US economy have diminished and the Fed has greater scope to gather data when setting the federal funds rate. His speech was interpreted as dialling back comments earlier this month that the Fed could pause interest rate hikes as early as March next year. Chair Jerome Powell's speech tomorrow will be closely watched as rising US rates pushed the 10-year Treasury yield to a seven-year high, sapping demand for equities.

Meanwhile, the Reserve Bank will release its financial stability report today and may loosen its restrictions on high loan-to-value mortgage lending. Governor Adrian Orr will front a media briefing and select committee hearing on the report.

"US Treasury yields are also broadly unchanged overnight, with Fed vice chair Clarida’s much-anticipated speech having little impact," Bank of New Zealand interest rate strategist Nick Smyth said in a note. "The USD is broadly higher once again, although the NZD has bucked the trend and is up slightly on the day."

US President Donald Trump told the Wall Street Journal it was highly unlikely he won't increase tariffs further on Chinese goods, saying if he can't reach a deal an additional US$267 billion will be imposed. The interview comes ahead of the G20 leaders' summit in Buenos Aires, where Trump will meet his Chinese counterpart Xi Jinping on the sidelines to discuss trade. The dispute between the two nations has spilled over to the rest of the world and is seen as a drag on global growth.

The kiwi rose to 94.02 Australian cents from 93.62 cents yesterday and increased to 4.7168 Chinese yuan from 4.6974 yuan. It climbed to 77.22 yen from 76.76 yen yesterday and advanced to 60.07 euro cents from 59.68 cents. The local currency rose to 53.28 British pence from 52.80 pence yesterday.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>