In this section
Columnists
Offers for readers
The comment stream
Recent comments
- 1 of 25926
- ››
Editors choice
- 1 of 365
- ››
Currencies news stream
Latest news
- Friday's Top 10 with NZ Mint 15
- Volatile session for NZ$
- 90 seconds at 9 am: Markets spooked 15
- Financial markets skittish and volatile
- Thursday's Top 10 with NZ Mint 17
- Bernanke delivers two messages 1
- 90 seconds at 9 am: American QE 66
- End of QE in sight for US
- Wednesday's Top 10 with NZ Mint 50
- Fed bond buying program not stopping yet 1
Most commented
- 90 seconds at 9 am: American QE 66
- Wednesday's Top 10 with NZ Mint 64
- Thursday's Top 10 with NZ Mint 60
- Friday's Top 10 with NZ Mint 57
- Exporters have to 'ride out' strong NZ$ 54
- Wednesday's Top 10 with NZ Mint 50
- Tuesday's Top 10 with NZ Mint 43
- Tuesday's Top 10 with NZ Mint 39
- Monday's Top 10 with NZ Mint 38
- Monday's Top 10 with NZ Mint 37
Most viewed
- Friday's Top 10 with NZ Mint 15
- 90 seconds at 9 am: Markets spooked 15
- Financial markets skittish and volatile
- Volatile session for NZ$
- Clouds gathering around the Aussie dollar 1
- A$ below parity with US$
- Key sees haircuts for Solid Energy's banks 25
- 90 seconds at 9 am: Changing course 2
- Wheeler spices things up
- RBNZ says has intervened in NZ$ 25
NZD ends week in NY trading higher than the last time the RBNZ intervened. TWI at 76.1, up sharply against AUD, JPY and GBP
In close-of-week trading in the New York currency markets, the New Zealand dollar surged to near a record high on the TWI.
It closed at 76.12 up from 75.47 the previous day.
The record high was 76.88 in July 2007.
The main drivers for the sharp rise were gains against the Australian dollar, the Japanese yen and the British pound. It also gained ½ a cent against the US dollar from the previous day.
The value against the key Australian dollar is now at 81.24 AUc, its highest level since July 2010. Since then, it reached a low of 72.66 AUc in March 2011.
The value against the Japanese yen is now ¥78.4 to NZ$1, its highest since August 2008.
The value against the British pound is now £0.5385, its highest since the floating of the New Zealand currency in March 1985.
The kiwi currency followed the euro in international markets, and the euro strengthened on a better risk outlook, stronger-than-forecast euro zone manufacturing data and expectations of easy monetary policy from Washington and Tokyo.
US jobs data came in better than expected, raising risk appetites. The Dow closed at 14,010 and approaching its October 2007 all-time high.
The yen was pummeled in international trading as a consequence of risky Japanese policy over ways it wants to tackle deflation.
The Australian dollar tumbled after data showed that Chinese growth in manufacturing was below estimates.
The last time the RBNZ acknowledged it intervened in currency markets to stop it rising excessively was in mid 2007 when the TWI reached 76.88 and then again in early 2008 when the TWI reached 74.2.
It may have also intervened in a minor way in December 2012 according to RBNZ balance sheet data, but it won't confirm that.
----------------------------------------------------------------------------
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
----------------------------------------------------------------------------
4 Comments
The value against the
The value against the Japanese yen is now ¥78.4 to NZ$1, its highest since August 2008.
The John Key government's focus on road construction and maintenance may prove to be timely as those previously unable to buy a second or third family car will be encouraged to do so if the car dealers pass on some of the price reductions now available ex-Japan.
NZ Dollar will keep going
NZ Dollar will keep going higher as the RBNZ has signalled "no OCR cuts ever" and "we will hike soon to attempt to suppress Auckland house prices driven by Asian investors".
And once again, the NZ economy will be driven into the ground by the RBNZ who is dictated to by global forces who require NZ to play a certain role in currency trading, short-term money drops, & investment targets.
Once NZD = US/AU90+c, OCR = 3.5%, unemployment = 12% - then we will all learn our lesson and watch our economy be driven into the ground.... and not buy houses - and put our money in TDs (to get taxed) and shares (to be manipulated by large investment co.s) etc....
And we can start all over again - with less small business/farms having survived the latest decimation ....
A test this week of Mr
A test this week of Mr Wheeler, then. He said the NZD was overvalued early in the week; strong words for a Reserve Bank Governor. He therefore was somewhat bound to intervene even then, you would think. Now the NZD has appreciated further, he surely must act, or send a strong message that his office is impotent.
JK told him 'no QE please'.
JK told him 'no QE please'. Banks will tell him 'no LVR changes please', Housing market pressures ' no OCR cuts' . What can he do?
Someone here suggested a while back for the RBNZ to cut twice then hike then cut then hike, - just to mess up the market predictions....and make very cryptic, highly nuanced statements that could mean either way.