The New Zealand dollar today edged higher after economic data showed business confidence turning more pessimistic, growth indicators weakening and inflation pressures rising, a dealer said.
At 5pm, the kiwi was at US72.25c (from US71.78c at the same time yesterday), having ranged between US71.96c and US72.28c. It began the session at US72.10c.
BNZ currency strategist Sue Trinh said the kiwi was supported by the quarterly survey of business opinion (QSBO), prepared by the New Zealand Institute of Economic Research.
"The kiwi has been meandering around that US72c figure with an upward bias today," Ms Trinh told NZPA.
"That (QSBO) data helped keep the kiwi bid," she said.
The survey found a net 28 per cent of firms surveyed now expect business conditions to deteriorate over the next six months against 6 per cent in the last survey in December.
Adjusted for seasonality, pessimism rose to a net 21 per cent from 16 per cent in December.
Cost pressures were widespread and inflationary expectations were strong, the survey found.
A net 40 per cent experienced higher prices in the last quarter and a net 31 per cent expect to raise prices against 28 per cent in the last survey.
Ms Trinh said that data made it more likely the Reserve Bank of New Zealand would raise its benchmark rate later this month or in June. It is currently at 6.75 per cent.
Meanwhile, the euro was at US$1.2980c (US$1.2927c), the greenback was at 107.65 yen (108.42), and the aussie was buying US77.50c (US77.20c).
The kiwi was fetching 77.76 yen (77.84), 0.5566 euro (0.5553), 38.20 British pence (38.12), 0.8620 Swiss francs (0.8604), and A93.22c (A92.98c).
Ms Trinh said the QSBO data also kept the kiwi in demand against the Australian dollar.
"That cross is very interest rate sensitive and that data today just reinforced the fact that the Reserve Bank still has more tightening (of monetary policy) to do," she said.
The trade-weighted index was at 70.75 (70.53) while the monetary conditions index was at plus 1079 (1067).
On the money markets, 90-day bank bill yields were at 7.08 per cent (7.10), July 2009 bonds were at 6.19 per cent (6.23) and April 2015s were at 6.07 per cent (6.10).
- NZPA
<EM>Currency:</EM> Business optimism survey keeps kiwi underpinned against USD and AUD
AdvertisementAdvertise with NZME.