NZ dollar falls as G7 leaders give no guidance on Europe   6 Jun 2012

Article - BusinessDesk

NZ dollar falls as G7 leaders give no official guidance on Spain, Greece

By Hannah Lynch

June 6 (BusinessDesk) - The New Zealand dollar fell after the leaders of the Group of Seven nations agreed to a coordinated response to Europe’s deteriorating financial crisis, though gave no guidance on how to do so, leaving investors wary of a potential rescue.

The New Zealand dollar fell to 75.59 US cents at 8am from 75.82 cents yesterday at 5pm. The trade weighted index was unchanged at 69.15.

G7 leaders agreed to help Spain and Greece sort out their public finances following an emergency conference call on Tuesday, though no decisive steps were made to aid the indebted nations. The talks come less than two weeks before a Group of 20 nations summit that will take place as Greece holds its second general election this year, and Germany comes under increasing pressure to take more decisive action to protect the region.

"G7 will come into the conversation today but the reality is they can do a lot of talking but it comes down to implementation," said Alex Sinton, senior dealer at ANZ New Zealand. "There is no short term fix - until there is action nothing will change."

Rating agency Standard & Poor's is giving Greece a one-in-three chance of leaving the euro-zone, which would probably lead to another sovereign default by the Mediterranean nation.

The kiwi dollar was buoyed by a rebound in dairy prices in the latest GlobalDairyTrade auction. Prices surged almost 14 percent from a three-year low on Fonterra Cooperative Group's online trading site.

"A solid overnight global dairy auction result should help to deliver more support for the New Zealand dollar on downside moves," Sinton said.

The New Zealand dollar rose to 77.60 Australian cents from 77.47 cents before the release of Australia's first-quarter gross domestic figures this afternoon. The Reserve Bank of Australia cut its target cash rate by 25 basis points to 3.5 percent yesterday as deteriorating global sentiment keeps interest rates expectations low.

Australian employment numbers are also set for release on Thursday.

New Zealand figures out today include the government financial statements for the 10 months ended April 30 and the March quarter's value of building work, followed by the wholesale trade survey from Statistics New Zealand on Friday.

The New Zealand dollar rose to 60.71 euro cents from 60.52 cents yesterday and increased to 49.15 British pence from 48.88 pence. The kiwi climbed to 59.53 yen from 59.40 yen.

(BusinessDesk)

Add a comment

Bookmark and Share

News

East Coast Iwi concerned over future of country’s oldest wharenui

23 Apr 2014 News
An East Coast iwi says they are concerned the Crown has not made good on its promise to return their wharenui – the oldest... more

EU/NZ renewable energy mission to the Pacific

22 Apr 2014 News
Foreign Affairs Minister Murray McCully and the European Commissioner for Development Mr Andris Piebalgs depart tomorrow on a... more

Business

Equity crowd funding carries risks, high failure rate

23 Apr 2014 Business News
Article - BusinessDesk   Equity crowd funding, latest step in much-hyped social capital, carries risks, high failure rate By... more

NZ dollar edges up as RBNZ rate review eyed

22 Apr 2014 Business News By Paul McBeth
  NZ dollar edges up as local trading resumes, RBNZ rate review eyed April 22 (BusinessDesk) - The New Zealand dollar edged up... more

Living

NZ film wins mention at Sunset film festival

22 Apr 2014 Entertainment
Film and Stage Producer/Director Craig Hutchison, is pleased to be representing New Zealand at the Sunset Film Festival in Los ... more

The Taite Music Prize: IMNZ announces this years winner

17 Apr 2014 Entertainment
The winner of the fourth annual Taite Music Prize 2013 is Lorde for her album ‘Pure Heroine’ released on Universal Music... more

Property

NZ house values rise at slowest annual pace in 6 months in March, QV says

7 Apr 2014 Property
April 7 (BusinessDesk) – New Zealand property values increased at the slowest annual pace in six months in March as lower... more

Auckland landlords lead in capital gains

28 Mar 2014 Property
Three-bedroom houses in Glen Innes giving an annual capital gain of 18.9%, followed by New Windsor. Auckland landlords are making... more

Migration

NZ migration rises to 11-year high in March as fewer kiwis leave for Australia

23 Apr 2014 Migration By Suze Metherell
April 23 (BusinessDesk) – New Zealand migration rose to an 11-year high in March, the second-highest gain on record, as fewer... more

New working holiday agreement between New Zealand and Croatia launched

28 Mar 2014 Migration
Citizens of Croatia aged between 18 and 30 will soon be eligible to apply for a New Zealand Working Holiday Visa, giving them the... more

Travel

Germany jumps to NZ’s fifth largest tourism market

23 Apr 2014 NZ Tourism
With 9,424 extra arrivals for the 12 months to the end of March, Germany has overtaken Japan to become New Zealand’s fifth... more

Warbirds over Wanaka

22 Apr 2014 Travel & Tourism
Wanaka: The success of the inaugural #GigatownWanaka Jet racing at the Warbirds Over Wanaka Airshow will likely see the event return... more

Sport

NZ Canoe Sprint Team Heads to Milan for World Cup

22 Apr 2014 Sport
The New Zealand Open team departs today to commence their World Cup campaign in Europe. Their first assault will be on the ICF Canoe... more

Top Results for Kiwi youth sailors in Britain

22 Apr 2014 Sport
New Zealand has won a mass of medals at the RYA Youth National Championships Regatta which wrapped up on Friday 18th April in... more

Columns

Gordon Campbell on the Shane Jones departure

23 Apr 2014 Opinion By Gordon Campbell
Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and... more

Mind-set, meaning & moderation in optimal health

20 Apr 2014 Column By Tricia Alach
The holistic helper's guide to Wellness: Part Two   To misquote Aristotle ‘We are what we repeatedly do, wellness then is... more

Kiwi Success

New Inspector-General of Intelligence and Security appointed

23 Apr 2014 Appointments
Prime Minister John Key today announced the appointment of Cheryl Gwyn as Inspector-General of Intelligence and Security. The... more

BNZ names Anthony Healy as new CEO, replacing Thorburn

17 Apr 2014 Appointments
April 17 (BusinessDesk) – Bank of New Zealand, the local unit of Australia’s third-biggest mortgage lender, named the... more

Recruitment

Growth seen further lifting average wage by $7,500

15 Apr 2014 Recruitment
  The average annual wage is expected to increase by $7,500 to around $62,200 a year by 2018 if New Zealand achieves its ... more

NZ employment confidence lifts in 1st-qtr

31 Mar 2014 Recruitment
Article - BusinessDesk   NZ employment confidence lifts in 1st-qtr, current job opportunities seen less negative March 31 ... more