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

PM saddened at passing of Dame Thea Muldoon

25 Feb 2015 News
PM saddened at passing of Dame Thea Muldoon Prime Minister John Key today expressed his sadness at the passing of Dame Thea ... more

Bill to fight child exploitation passes second reading

25 Feb 2015 News
  A Bill to better protect children from sexual exploitation passed its second reading in Parliament last night.   The... more

Business

MARKET CLOSE: NZX 50 rises to record, led by Xero

25 Feb 2015 Business News
By Suze Metherell Feb. 25 (BusinessDesk) - New Zealand shares rose to a record, led by Xero after it raised $147 million from two... more

Tourism Holdings beats 1H guidance on reduced fleet

25 Feb 2015 Business News
Article - BusinessDesk   Tourism Holdings beats 1H guidance on reduced fleet, wider margins By Suze Metherell Feb. 25 ... more

Living

A little drive goes a long way

25 Feb 2015 Lifestyle
Dunedin businesses have given their full support to the Otago Polytechnic Education Open 2015. The event will be taking place at... more

Duke Kahanamoku – 100 years of Surfing in New Zealand

25 Feb 2015 Lifestyle
Surfbreak Protection Society Duke Kahanamoku – 100 years of Surfing in New Zealand Celebrations are to be held in New Brighton... more

Property

Auckland inner-city height restrictions weighing on supply

25 Feb 2015 Property By Paul McBeth
Auckland inner-city height restrictions weighing on supply, RBNZ's Wheeler says Feb. 25 (BusinessDesk) - New Zealand's government... more

NZ house sales rise 2.6% in January, median price dips from December

11 Feb 2015 Property
Article - BusinessDesk Feb. 11 (BusinessDesk) - New Zealand residential property sales rose in January from the same month last... more

Migration

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

Free new Kiwi workshops return for fresh season

23 Jan 2015 Migration
Newcomer settlement support agency Auckland Regional Migrant Services (ARMS) is kick-starting the New Year with the return of its ... more

Travel

Air NZ sees fare discounts; yield pressure looms

25 Feb 2015 Travel & Tourism
By Fiona Rotherham Feb. 25 (BusinessDesk) - The only cloud on Air New Zealand’s horizon in coming months will be yield ... more

Air NZ posts higher normalised earnings

25 Feb 2015 Travel & Tourism
Article - BusinessDesk   Air NZ posts higher normalised earnings By Fiona Rotherham Feb. 25 (BusinessDesk) - Air New Zealand... more

Sport

2015 NZL Sailing Team Announced

25 Feb 2015 Sailing
Yachting New Zealand has named 15 campaigns in the 2015 NZL Sailing Team. All are chasing the ultimate goal of Olympic glory in... more

All Blacks Tours to South Africa on sale now

25 Feb 2015 Rugby
The All Blacks are set to return to South Africa this July to take on the Springboks at Ellis Park in Johannesburg. This will be the... more

Columns

Gordon Campbell: Are NZ troops the least of IS’s problems?

25 Feb 2015 Opinion By Gordon Campbell
Gordon Campbell on whether New Zealand troops are the least of Islamic State’s problems   Given that it has been ... more

Gordon Campbell on drip-fed info about the Iraq deployment

24 Feb 2015 Opinion By Gordon Campbell
Gordon Campbell on the drip-feeding of information about the Iraq deployment   There are two ways of framing the story of our... more

Kiwi Success

New Consul-General to Sydney

20 Feb 2015 Appointments
Foreign Minister Murray McCully has named diplomat Billie Moore as New Zealand’s new Consul-General in Sydney. "Ms Moore will... more

New Ambassador to Ethiopia and the AU

20 Feb 2015 Appointments
New Zealand Government New Ambassador to Ethiopia and the AU Foreign Minister Murray McCully has named diplomat Bruce Shepherd as ... more

Recruitment

Workforce skills target lifted

19 Feb 2015 Recruitment
Tertiary Education, Skills and Employment Minister Steven Joyce says better-than-expected Better Public Services results mean the ... more

Strong job growth and record labour market participation

4 Feb 2015 Recruitment
The latest labour market data shows continuing strong employment growth with 80,000 more jobs added to the New Zealand economy in ... more