Sharechat Logo

NZ dollar sinks vs. Japanese yen after Abe postpones sales tax increase

Thursday 2nd June 2016

Text too small?

The New Zealand dollar sank against the yen after Japanese Prime Minister Shinzo Abe said he would delay a planned increase in the sales tax rate, damping expectations for further monetary stimulus. 

The kiwi slid to 74.55 yen at 8am in Wellington, from 74.95 yen at 5pm yesterday. The local currency increased to 68.15 US cents from 67.84 cents yesterday, aided by a 3.4 percent gain in prices on the GlobalDairyTrade platform overnight.

The yen strengthened after Abe announced he would postpone increasing Japan’s sales tax to 10 percent until 2019. That damped speculation that the country may add more monetary stimulus, pushing up the currency. 

"Japan delayed a sales tax hike for two-and-a-half years," OMF senior dealer foreign exchange Stuart Ive said in a note. "The longer-than-expected delay raised fears that Japan was also in no hurry to weaken the yen currency through monetary stimulus."

The New Zealand dollar rose to 93.91 Australian cents from 93.24 cents yesterday ahead of Australian data on trade and retail sales for April today.

The kiwi increased to 47.28 British pence from 46.83 pence yesterday, advanced to 4.4807 yuan from 4.4734 yuan, and was little changed at 60.88 euro cents from 60.98 cents. The trade-weighted index gained to 73.48 from 73.21 yesterday.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report