Kiwi above 76 US cts as Greek pro-bailout party leads polls   28 May 2012

Article - BusinessDesk

Kiwi above 76 US cts as Greek pro-bailout party leads polls

By Paul McBeth

May 28 (BusinessDesk) - The New Zealand dollar rose above 76 US cents in local trading for the first time in a week after early Greek opinion polls showed the pro-bailout New Democracy party had the most support ahead of next month's general election.

Financial markets are likely to judge this as allaying fears about a potential exit from the euro-zone.

The kiwi climbed to 76.08 US cents at 5pm from 75.72 cents at 8am and 75.29 cents at the close of trading in New York on Friday. The trade weighted index gained to 69.29 from 68.89 last week.

Greece's New Democracy, which supports the rescue plan negotiated with global leaders, placed first in all six opinion polls published on May 26 in the lead-up to the June 17 election. The Mediterranean nation's legislators threw the region into disarray when they failed to form a viable government at last month's election, raising fears it may have to leave the euro-zone and ditch the single currency.

"It's a long way to go to 17 June and the polls are going to swing," said Imre Speizer, market strategist at Westpac Banking. The kiwi's gain is "certainly alleviating that oversold condition, and we might see it bounce up to the 77, 78 US cents area this week."

With US markets closed for the Memorial Day holiday, Monday, investors will be watching headlines in Europe, with speculation Spain may seek European Central Bank support to bail out the nationalised lender, Bankia SA. The country's fourth-biggest bank needs 19 billion euros of state funding. The yield on Spain's benchmark 10-year bond rose 3 basis points to 6.35 percent.

Three of five strategists surveyed by BusinessDesk expect the kiwi will gain this week as Europe's sovereign debt woes calm down for the time being.

US employment figures and Chinese manufacturing data will be the focus for traders when they're published on Friday.

The New Zealand dollar rose to 60.49 euro cents from 60.14 cents at the close of trading in New York on Friday and increased to 48.50 British pence from 48.07 pence. The kiwi climbed to 77.25 Australian cents from 77.15 cents last week and gained to 60.97 yen from 59.97 yen.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Shanghai trip to inspire New Zealand teachers

16 May 2016 News
Asia New Zealand Foundation Shanghai trip to inspire New Zealand teachers A group of teachers hailing from Invercargill to Whangarei... more

Highest ever percentage of women on state sector boards

16 May 2016 News
New Zealand Government Hon Louise Upston Minister for Women 15 May 2016 Highest ever percentage of women on state sector boards New... more

Business

NZ dollar tumbles vs Aussie after RBA minutes

17 May 2016 Business News By Johnathan Underhill
Tuesday 17 May 2016 05:10 PM NZ dollar tumbles vs Aussie after RBA minutes, extends slide on inflation outlook May 17 ... more

Emirates Team New Zealand partners with HP NZ

17 May 2016 Business News
HP New Zealand Media Alert Emirates Team New Zealand partners with HP NZ to drive performance in 35th America’s Cup Auckland, ... more

Living

Exhibition to Showcase Ashburton’s Migrant Community

16 May 2016 Lifestyle
Crossing The Bridge Exhibition to Showcase Ashburton’s Migrant Community 16 May 2016 A photography and film exhibition... more

Hunt for the Wilderpeople Takes Top Spot at the Box Office

16 May 2016 Entertainment
Taika Waititi’s Hunt for the Wilderpeople has cemented its place in the record books overtaking the 2010 Kiwi classic BOY... more

Property

Record annual profit for Kiwi Property

16 May 2016 Property
By Jonathan Underhill May 16 (BusinessDesk) - Kiwi Property Group, the country's biggest listed property investor by market value,... more

Record annual profit for Kiwi Property

16 May 2016 Property
Portfolio gain, rental income growth delivers record annual profit for Kiwi Property By Jonathan Underhill May 16 (BusinessDesk) -... more

Migration

Kiwis could be affected by tighter UK rules

30 Mar 2016 Migration By Audrey Young
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more

Immigrants' attitudes to corruption worries SFO

17 Feb 2016 Migration By Sophie Boot
Feb. 17 (BusinessDesk) - New Zealand's record inbound migration has undermined the country's squeaky-clean reputation because of an... more

Travel

Jucy plans to expand pod-style hotel chain to Australia

16 May 2016 NZ Tourism
Article - BusinessDesk Monday 16 May 2016 12:20 PM Jucy plans to expand pod-style hotel chain to Australia in 2017 By Fiona... more

Budget 2016: Cycle trail funding boosts regions

16 May 2016 NZ Tourism
New Zealand Government Rt Hon John Key Prime MinisterMinister of Tourism 15 May 2016 Media Statement Budget 2016: Cycle trail... more

Sport

New Zealand’s ‘other’ national sport has its time to shine

16 May 2016 Sport
Kids' Lit Quiz New Zealand’s ‘other’ national sport has its time to shine Monday, May 16 2016: There’s no... more

Panthers match huge success for Christchurch

16 May 2016 Rugby League
Chambers PR Penrith Panthers v NZ Warriors May 15, 2016 Panthers match huge success for Christchurch The sold-out Penrith Panthers... more

Columns

Gordon Campbell on NZ’s support for the Kazakh dictatorship

16 May 2016 Column
Column - Gordon Campbell   Gordon Campbell on New Zealand’s support for the Kazakh dictatorship Thanks to Sacha Baron... more

Gordon Campbell on the future of conservatism

12 May 2016 Opinion By Gordon Campbell
    For years, observers have noted the contrast between Prime Minister John Key’s ordinary Kiwi bloke persona, and... more

Kiwi Success

New appointments to Vulnerable Children’s Board

12 May 2016 Appointments
New Zealand Government Hon Anne Tolley Minister for Social Development 12 May 2016 New appointments to Vulnerable Children’s... more

University of Otago appoints next Dean of Pharmacy

28 Apr 2016 Appointments
University of Otago University of Otago appoints next Dean of Pharmacy A leading researcher from Canada has been appointed as the... more

Recruitment

Zero-hour contracts gone, PPL extended

10 Mar 2016 Recruitment
New Zealand Government Hon Michael Woodhouse Minister for Workplace Relations and Safety 10 March 2016 Zero-hour contracts gone, PPL... more

Scheme helping to staff hard to fill positions

28 Feb 2016 Recruitment
New Zealand Government Scheme helping to staff hard to fill positions Health Minister Jonathan Coleman says an incentive scheme... more