Sharechat Logo

Kiwi consolidates around US80c

Friday 29th April 2011

Text too small?

The New Zealand dollar consolidated near recent highs today after a week in which the dominant theme was weakness in the US dollar.

The NZ dollar was at US80.08c at 5pm from US80.18c at 8am and US80.76c at 5pm yesterday. It was at A73.46c after falling to A73.25c yesterday, its lowest level against the Australian currency in a month. It was A73.85c at 5pm yesterday.

Economists said the monthly trade surplus of $464 million for March released today was above market expectations and was driven by exports.

Philip Borkin at Goldman Sachs & Partners New Zealand Ltd said there were few implications for monetary policy from the data. He is predicting gross domestic product growth of just 0.1% in the first quarter.

"We see net exports making a negative contribution to first quarter 2011 GDP growth led by flat export volumes, and a further modest pick-up in import demand," Borkin said.

ANZ said the market reaction to the data was muted even though it soundly beat expectations.

The US dollar continued to trade around three-year lows against major currencies today as investors continued to expect the Federal Reserve to keep interest rates near zero.

The Fed said this week it would complete its US$600 billion bond-buying programme in June. But Fed chairman Ben Bernanke signalled that there was no rush to tighten monetary policy with the jobs market still in a "very, very deep hole".

The high-yielding Australian dollar eased to US$1.0898 at 5pm after reaching a fresh post-float high of $US1.0948 on Thursday. The free float began in December 1983.

The NZ dollar was at 0.5400 euro at 5pm, from 0.5434 euro at the same time yesterday. It was at 65.31 yen from 66 yen, while the trade weighted index was down to 68.15 from 68.66.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report
PGG Wrightson Limited (NZX: PGW) Guidance Update
Vital Limited (NZX: VTL) Provides Update on PSN LMR
18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date