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

 

NZ dollar under pressure as franc, yen find favour

NZ dollar under pressure as franc, yen find favour amid US-China trade tensions


By Paul McBeth

Dec. 7 (BusinessDesk) - The New Zealand dollar remained under pressure as heightened concerns over US-China relations encouraged investors to buy 'safe haven' currencies such as the yen and Swiss franc.

The kiwi traded at 68.71 US cents as at 8am in Wellington from 68.62 cents yesterday. The trade-weighted index was at 74.91 from 74.87 yesterday.

The yen and Swiss franc outperformed other currencies after the arrest of Huawei Technologies' chief financial officer Wanzhou Meng in Canada for extradition to the United States reignited fears over the US-China relationship. Stocks on Wall Street fell as the arrest undermined earlier optimism that presidents Donald Trump and Xi Jinping were making efforts to cool the tensions.

"The arrest is seen by many as another source of US-China confrontation, striking at the heart of President Xi’s ambitions to make the country a technology superpower," Bank of New Zealand senior markets strategist Jason Wong said in a note. "Weaker risk sentiment sees JPY and CHF at the head of the leaderboard, although with gains of 0.5 percent against the USD, the moves haven’t been particularly large."

New Zealand's currency has climbed 6.6 percent on a trade-weighted basis from its trough on Oct. 8 as local data indicated the economy and labour market are stable, prompting traders to reign in expectations for a potential interest rate cut.

Weaker-than-expected Australian data this week helped boost the kiwi to an eight-month high against its trans-Tasman counterpart. It traded at 95.06 Australian cents from 95.04 cents yesterday.

"We still like the cross at these levels, even though it is near the top of its familiar trading range, with relative fundamentals in NZ’s favour at present," Wong said.

The kiwi traded at 77.32 yen from 77.35 yen and increased to 4.7290 Chinese yuan from 4.7215 yuan. It decreased to 60.34 euro cents from 60.51 cents yesterday and fell to 53.73 British pence from 53.93 pence.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Stats NZ: Annual Goods Trade Surplus At 28-Year High

New Zealand’s annual goods trade surplus reached a 28-year high of $2.2 billion as imports tumbled in the year ended October 2020, Stats NZ said today. “This is the largest annual surplus since the July 1992 year, driven mainly by much lower ... More>>

ComCom: How Real Is That Bargain?

The Commerce Commission urges retailers and consumers to think hard about the bargains being offered as ‘Black Friday’ and Christmas draw near. Black Friday has now overtaken Boxing Day in terms of retail spending, according to data from electronic ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>