LNG decision to boost business

Business, Normal

A POSITIVE final investment decision (FID) early next month for the PNG liquefied natural gas (LNG) project should boost business confidence.
It should also help the kina in the short-to-medium term, according to the ANZ Weekly Update.
The local currency traded relatively weaker against the euro, pound, yen, New Zealand dollar and Singapore dollar and Aussie dollar as these currencies rallied against the US currency.
But the kina managed to gain respect against the greenback, driven by some US dollar inflows.
The kina-US dollar rate gained 0.3% in the interbank market and affirmed previous view that a move on the topside was still on the cards.
Apart from a positive flow of inward currencies, the kina was also assisted by commodity prices, especially gold price, which has traded at an all time high.
Central Bank has provided support to counter the continued strength of the Aussie dollar.