6 Nov 2013

NZ dollar rises on better than expected jobs growth

7:56 pm on 6 November 2013

Better than expected employment figures helped propel the New Zealand dollar higher on Thursday.

Employment surged 1.2% in the September quarter when most economists had expected employment growth of 0.5%.

The percentage of the workforce employed, known as the participation rate, rose half a percentage point to 68.6%.

Wages rose a modest 0.4%.

ANZ Bank senior manager in the foreign exchange market Sam Tuck says strong employment growth points to strong economic growth and increasing investment.

He says businesses are investing in people which is one of the most expensive forms of investment and this business confidence gives people confidence to invest in New Zealand assets.

Westpac chief economist Dominick Stephens says the dollar's rise is due to the market factoring in inflation pressures pushing up interest rates.

At about 5pm on Wednesday, the Kiwi was trading at 83.84 US cents, more than a cent higher than at the same time on Tuesday, it was nearly a cent higher at 88.14 Australian cents, up nearly half a penny to 52.12 British pence, at 0.6203 euro and at 82.72 yen.