NZ dollar falls as ECB halts loans to Greek banks 17 May 2012
- MARKET CLOSE: NZ shares rise; Spark, Meridian gain Business
- Kiwi heads for 1.7% weekly fall as RBNZ rules out rate hike Business
- Chinese demand drives lamb wool price rises to 6-week high Business
- Spark's market cap slips, as investors weigh competition Business
- Fonterra reshuffles management team Kiwi Success
- Horticultural production tops $7B, led by wine and apples Business
- Race-based water rights a step closer Business
- Pan Pacific independent directors reject Zeta offer Business
- Lubricant deal slips away as Commission nixes merger Business
- LanzaTech has other commercial plants in the pipeline Business
The New Zealand dollar fell to a five-month low after the European Central Bank said it will temporarily stop lending to Greece's banks, damping investors' appetite for risk-sensitive assets.
The New Zealand dollar fell as low as 76.20 US cents in Northern Hemisphere trading from 76.48 cents yesterday. It traded at 76.30 cents just before 8am. The trade weighted index slipped to 69.33 from 69.47.
Investor nerves remained fragile after Europe's central bank said it will put a temporary hold on lending to some Greek banks to limit its risk in response to the Mediterranean nation's inability to elect a government. ECB President Mario Draghi signalled the bank won't compromise on its key principals just to keep Greece in the euro, and acknowledged for the first time that Greece could leave the euro. The bank has no new plans for policy action and is instead waiting to see the outcome of the next election.
"You have to be cautious of these kinds of headlines because they are still just making the market jump," said Rebecca Orlowitz, analyst at Commonwealth Bank of Australia in New York. "The kiwi has just slowed back down - we expected 78.60 US cents to cap the topside but I think we are looking to go below 76.20 cents before we see some buyers."
Greece’s three main political parties have been unable to reach an agreement since elections on May 6. The nation will probably return to the ballot box on June 17. This date is yet to be confirmed.
"Until we see these elections it kind of just a call for 'what's your view?'" Orlowitz said.
US Federal Reserve policy makers said extra stimulus may be needed to help boost the world's largest economy if growth slows or there is elevated risk, according to the minutes from the Federal Open Market Committee's April meeting.
Earlier this year the Fed reaffirmed its pledge to keep interest rates near zero until at least the end of 2014.
Investors will be eyeing the sale of French and Spanish government bonds on Thursday to see if the region's debt crisis is continuing to worsen. It will be the first French auction since Francois Hollande defeated Nicolas Sarkozy as president.
In New Zealand, ANZ Job Advertisements for April and March's Producer Price Index from Statistics New Zealand will be released today.
The New Zealand dollar fell to 60.06 euro cents from 60.21 cents yesterday and declined to 77.04 Australian cents from 77.23 cents. The kiwi was little changed at 47.89 British pence from 47.94 pence yesterday and was largely unchanged at 61.27 yen from 60.21 yen.
24 Apr 2015 News
Anzac Day 'We will remember them' The Anzac Day messages: "One hundred years ago, the newly formed Anzac forces landed at... more
21 Apr 2015 News
A parliamentary delegation led by the Speaker, Rt Hon David Carter, has been advancing the bilateral and trade relationship with... more
23 Apr 2015 Business News
Oracle-owned boatbuilder has had two government grants in three years April 23 (BusinessDesk) - Core Builders Composites,... more
24 Apr 2015 ANZAC
Tomorrow marks the 100th ANZAC Day, and if you are a Kiwi or Aussie far from home there are plenty of events on to enable you both to... more
23 Apr 2015 Food & Wine
The New Zealand Cellar’s crowdfunding campaign has ended and they are delighted to report that the project raised... more
21 Apr 2015 Property
Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to... more
14 Apr 2015 Property
April 14 (BusinessDesk) - New Zealand residential property prices rose in March, led by Auckland where housing supply isn't meeting... more
23 Apr 2015 Migration
April 23 (BusinessDesk) - New Zealand migration hit a new annual record in March, as more students arrived from India and China and... more
2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more
17 Apr 2015 Travel & Tourism
Air NZ's Houston service paves the way for partnership with United Airlines, analysts say April 17 (BusinessDesk) - Air New... more
17 Apr 2015 Travel & Tourism
Wellington Airport's revised fees are 'just within' acceptable range of returns, regulator says April 17 (BusinessDesk) -... more
25 Apr 2015 Equestrian
Kiwi eventer Tim Price and Wesko have delivered their best-ever dressage score to sit at the front of the field this morning at the... more
24 Apr 2015 Column
Gordon Campbell on the hair-pulling finale, and the real hero of Gallipoli Don’t know about you, but when hi-jinks and... more
14 Apr 2015 Opinion
Houston, there is clearly a problem with (a) the plunge in pass rates for University Entrance qualifications, which has been ... more
24 Apr 2015 Appointments
Fonterra reshuffles management team to speed up value-add strategy April 24 (BusinessDesk) - Fonterra Cooperative Group, the... more
18 Apr 2015 Recruitment
The He Toki ki te Mahi Apprenticeship Training Trust was launched by Prime Minister, the Rt Hon John Key at Rehua Marae in ... more