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

McCully visits Iraq ahead of NZ deployment

24 Mar 2015 News
  Foreign Minister Murray McCully travelled to Baghdad yesterday for talks with Iraq’s Prime Minister Mr Haider al-Abadi... more

Trade Minister welcomes signing of NZ-Korea FTA

23 Mar 2015 News
New Zealand Government Trade Minister welcomes signing of NZ-Korea FTA Trade Minister Tim Groser today signed the New Zealand Korea... more

Business

NZ-Korea FTA signed amid spying, lost sovereignty claims

23 Mar 2015 Business News By Pattick Smellie
  NZ-Korea FTA signed amid spying, lost sovereignty claims March 23 (BusinessDesk) - A long-awaited free trade agreement... more

2degrees acquires Snap ISP for complete business offering

23 Mar 2015 Business News By Pattick Smellie
2degrees acquires Snap ISP for complete business offering March 23 (BusinessDesk) - 2Degrees, New Zealand's third-largest mobile... more

Living

2degrees lights up Auckland Harbour Bridge in World First

13 Mar 2015 Lifestyle
Fusing light, music, mobile and one of Auckland’s most recognisable landmarks together – 2degrees launched another Kiwi... more

Third Thursday Set to Groove

9 Mar 2015 Lifestyle
The sounds of legendary jazz musician Charles Mingus is set to raise the beat of Wellington’s waterfront on 19 March, when the... more

Property

NZ house prices rise 3.6% in February

12 Mar 2015 Property By Tina Morrison
  NZ house prices rise 3.6% in February, led by a 14% jump in Auckland prices March 12 (BusinessDesk) - New Zealand residential... more

Revealed: Auckland's cheapest suburbs

9 Mar 2015 Property
Many home buyers face long commute to Auckland jobs as they move to Wellsford, Pokeno and Hamilton. Only six areas of Auckland still... more

Migration

PM plays down claim war criminals are living in NZ

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

NZ migration rose to record in 2014

30 Jan 2015 Migration By Tina Morrison
  NZ migration surged to record in 2014, helped by robust economy Jan. 30 (BusinessDesk) - New Zealand migration surged to a... more

Travel

Foss welcomes agreement for rental vehicle code

17 Mar 2015 Travel & Tourism
Associate Transport Minister Craig Foss is welcoming a move by the rental vehicle industry to establish a Code of Best Practice to... more

Productive discussions on Queenstown’s tourism workforce

6 Mar 2015 Travel & Tourism
Sustainable workforce solutions were at the centre of discussions between Government Ministers and tourism industry representatives... more

Sport

ICC World Cup 2015: Semi Final New Zealand beats South Africa by four wickets

24 Mar 2015 Cricket
New Zealand beats South Africa by four wickets. In... more

ICC Cricket World Cup Fever takes hold in New Zealand

24 Mar 2015 Cricket
Ahead of the first semi-final in the land of rugby, all talk is about cover drives and yorkers more

Columns

Gordon Campbell on Pacific spying

24 Mar 2015 Column By Gordon Campbell
  Gordon Campbell on Pacific spying, Obama as Spock and Kendrick Lamar So New Zealand has using the GCSB to spy on its friends ... more

STEPHEN FLEMING: SPIN AND THE FIFTH BOWLER JUST GIVE NEW ZEALAND THE EDGE

23 Mar 2015 Column
Both teams are playing with confidence and one look at the talent on show on either side means it has the potential to be a classic,... more

Kiwi Success

Tower names Seniors Money's Brett Wilson as CFO

18 Mar 2015 Appointments
  Tower names Seniors Money's Brett Wilson as CFO, replacing Boggs March 18 (BusinessDesk) - Tower, the listed general insurer,... more

Kiwi start-up Glassjar launches payments app in the US

6 Mar 2015 People
Glassjar, the kiwi software start-up whose app provides people an easy way of sharing bills, has launched in the United States. The... more

Recruitment

RESEND: 63% of Warehouse permanent staff now on career wage

20 Mar 2015 Recruitment By Fiona Rotherham
  RESEND: Warehouse says 63% of permanent staff now on 'career retailer wage' (Fixes fourth paragraph to show Warehouse is... more

Woodhouse welcomes skilled migrants

12 Mar 2015 Recruitment
Immigration Minister Michael Woodhouse welcomes new figures out today showing an increasing number of skilled migrants coming to ... more