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

Business leaders join international cyber security line-up

28 Apr 2016 News
New Zealand Government Hon Amy AdamsMinister for Communications 28 April 2016 More than 200 top business people will join... more

ANZAC 2016: 100th Commemoration

25 Apr 2016 News
The Ode of Rememberance  They went with songs to the battle, they were young.Straight of limb, true of eye, steady and aglow.They... more

Business

Landmark EQC settlement

28 Apr 2016 Business News
Article - BusinessDesk Landmark EQC settlement agrees it must repair homes to 'when new' state By Sophie Boot April 28 ... more

US underwear giant Hanes seeks Pacific Brands

28 Apr 2016 Business News
Article - BusinessDesk Thursday 28 April 2016 11:39 AM US underwear giant Hanes seeks Pacific Brands in A$1.1 bln offer By Jonathan ... more

Living

100 Years On – ANZAC Day commemorated where it first started, in London

25 Apr 2016 ANZAC By Charlotte Everett
You could be forgiven for assuming that the first ever ANZAC Day was commemorated in Australia or New Zealand. In fact, it was on this... more

Short Film Festival to Celebrate Canterbury

24 Mar 2016 Lifestyle
Canterbury Shorts   24 March 2016 Short Film Festival to Celebrate Canterbury Christchurch – A one-night only Canterbury... more

Property

KiwiSaver home buyer support tweaked

28 Apr 2016 Property
New Zealand Government Hon Dr Nick Smith Minister for Building and Housing 28 April 2016  Changes to KiwiSaver withdrawal rules... more

House-sharing aims to get Aucklanders on property ladder

27 Apr 2016 Property
Article - BusinessDesk House-sharing offer aims to get Aucklanders on property ladder By Fiona Rotherham April 27 (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

Air New Zealand to revenue share with United in NZ-US routes

11 Mar 2016 Travel & Tourism
Article - BusinessDesk   Air New Zealand to revenue share with United in NZ-US routes By Paul McBeth March 11 (BusinessDesk) -... more

First Dubai - Auckland flights take off

2 Mar 2016 NZ Tourism
New Zealand Government   Hon Simon Bridges Minister of Transport 2 March 2016 First Dubai - Auckland flights take off The start... more

Sport

Sleepless Nights for Ferns Selectors

28 Apr 2016 Rugby League
New Zealand Rugby League Thursday, April 28, 2016Sleepless Nights for Ferns Selectors   Akarana second row Annetta Nuuausala is ... more

NZL takes early lead in three events at Sailing World Cup

28 Apr 2016 Sailing
Yachting New Nealand NZL takes early lead in three events at Sailing World Cup Hyeres The NZL Sailing Team has made a strong start... more

Columns

Gordon Campbell on Trump and the Madman Theory

28 Apr 2016 Opinion By Gordon Campbell
Gordon Campbell on Trump and the Madman Theory Years ago, Richard Nixon explained to his chief adviser Bob Haldeman what has since... more

Gordon Campbell on Kiwirail’s latest stint in the dogbox

27 Apr 2016 Opinion By Gordon Campbell
Gordon Campbell on Kiwirail’s latest stint in the dogbox The denigration of Kiwirail continues. The latest review (based on a ... more

Kiwi Success

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

Network for Learning board reappointment

27 Apr 2016 Appointments
New Zealand Government Hon Nikki KayeAssociate Minister of Education 27 April 2016 Media Statement Network for Learning board... 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