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

Gareth Morgan: Election Day is Time to Refocus on Policies

19 Sep 2014 Opinion
Gareth Morgan: Election Day is Time to Refocus on Policies Over the course of this election campaign there has been a lot of focus... more

Daily Election Update #12: NZ First to hold balance of power

19 Sep 2014 News
iPredict IPREDICT LTD 2014 NEW ZEALAND ELECTION DAILY UPDATE #12 www.ipredict.co.nz more

Business

NZ consumer confidence edges up in September from 10-month low

19 Sep 2014 Business News By Suze Metherell
Sept. 19 (BusinessDesk) - New Zealand consumer confidence rose in September from a 10-month low, as households adjust to a more... more

Goodman to spend $33.4M on developments, sells Carter Holt Harvey plant in Christchurch

19 Sep 2014 Business News By Suze Metherell
Sept. 19 (BusinessDesk) - Goodman Property Trust, which is selling assets to fund development, will spend $33.4 million on four ... more

Living

Pop superstar Lady Gaga using Shuttlerock's kiwi software

15 Sep 2014 Environment By Fiona Rotherham
Sept. 15 (BusinessDesk) - New Zealand visual marketing software company Shuttlerock has added Lady Gaga to its client list. While... more

German, Kiwi films big winners at Uni Shorts 2014

15 Sep 2014 Entertainment
AUCKLAND: German filmmakers dominated the awards at the third annual Uni Shorts International Student Film Festival held over the... more

Property

Auckland house sales drop in August as winter, election weigh

3 Sep 2014 Property By Paul McBeth
Sept. 3 (BusinessDesk) - Auckland house sales fell for a third month in August and the number of listings remained muted in the... more

House sales down as winter cools market - REINZ

14 Aug 2014 Property
New Zealand house sales fell in July as winter cooled the appetite of house hunters while a drop in properties selling for $400,000... more

Migration

NZ net migration at annual record in August on big inflow

19 Sep 2014 Migration By Suze Metherell
  NZ net migration at annual record in August on big inflow, fewer departures Sept. 19 (BusinessDesk) - New Zealand’s... more

Reserve Bank says migration impact on housing 'muted' so far

11 Sep 2014 Migration By Suze Metherell
Sept. 11 (BusinessDesk) - The Reserve Bank is keenly watching the impact New Zealand's decade-high net migration inflow is having on... more

Travel

Longer Wellington runway worth 2-5 flights daily by 2060

11 Sep 2014 Travel & Tourism By Pattrick Smellie
Sept. 11 (BusinessDesk) - Plans for a $350 million runway extension for Wellington International Airport would provide the capital... more

NZ guest nights rise in July

10 Sep 2014 Travel & Tourism By Suze Metherell
NZ guest nights rise in July on school holidays, record short term visitors   Sept. 10 (BusinessDesk) - New Zealand guest... more

Sport

Prince Harry to be Honorary President of England Rugby 2015

19 Sep 2014 Rugby
Prince Harry Announced as Honorary President of England Rugby 2015 on One Year to Go to Rugby World Cup 2015 With One Year to Go to... more

Silver Ferns Squad & Constellation Cup Team Announced

19 Sep 2014 Netball
Netball New Zealand National Selectors have chosen 19 players in the Silver Ferns Squad for the 2014/2015 international Netball... more

Columns

Gordon Campbell on a campaign that is ending as it began

19 Sep 2014 Opinion
Column - Gordon Campbell   Gordon Campbell on a campaign that is ending as it began This election campaign is getting no less... more

Martin Doyle Cartoon: Election on a fork 'n' knife-edge

19 Sep 2014 Opinion
Opinion - Martin Doyle   Martin Doyle Cartoon: Election on a fork 'n' knife-edge   more

Kiwi Success

Prestigious Awards in Psychology

10 Sep 2014 People
The New Zealand Psychological Society (NZPsS) -the largest membership association for psychologists in New Zealand, offers awards... more

The duo behind NZ's hottest new label

20 Aug 2014 People
We're expecting big things from Harman Grubisa, the new label from Auckland-based friends Madeleine Harman (right) and Jessica... more

Recruitment

Paramedics in NZ jump at opportunity of London career

11 Sep 2014 Recruitment
Paramedics in New Zealand jump at opportunity of a clinical career in London Paramedics hoping for a chance to work for the... more

High dollar, hands-off Govt sends workers to dole queue

22 Aug 2014 Recruitment
The loss of up to 100 jobs at Croxley stationery in Auckland is devastating news for their families and the local Avondale... more