NZ dollar retreats as Spanish optimism fades, US stocks fall 12 Jun 2012
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
The New Zealand dollar fell more than half a US cent as optimism over Spain's 100 billion euro lifeline faded after questions were raised about who is going to pay for the bailout, sapping investor confidence and pushing stocks on Wall Street lower.
The kiwi fell to 76.87 US cents at 8am from 77.65 cents yesterday at 5pm. The trade weighted index declined to 70.15 from 70.48.
Stocks on Wall Street fell as investors reassessed the plan to bailout Spain's banking system, with the Standard & Poor's 500 index dropping 1.3 percent to 1308.93. European policymakers are yet to clarify whether the loan granted to shore up Spain's banks will come from the region’s permanent support fund, the European Stability Mechanism or its temporary European Financial Stability Fund.
"Overnight we have seen various calls from Germany and Finland that the money should come from the European Stability Mechanism," said Stuart Ive, currency strategists at HiFX. "The New Zealand dollar is taking its lead from overseas and it means we are seeing a risk-off scenario - at the moment the kiwi has the potential to go as low as 76.20 US cents and there will be more risk towards the end of the week with the Greek elections."
Spain’s rescue comes a week before Greece’s second round of elections on June 17. The result will be closely watched by markets in the event voters deiced to elect a government that decides to leave the region’s shared currency.
The package has also moved Italy into the front line on concern it may be next to succumb to the debt crisis. The yield on Italian 10-year government bonds rose 27 basis points to 6.04 percent, the biggest daily rise since Dec. 8, according to Bloomberg.
Germany, the Netherlands, Austria and Italy will all sell government bonds this week. The Netherlands will sell up to 2.5 billion euros of 2033 bonds on Tuesday, while Germany is set to offer 5 billion euros of 2022 bonds on Wednesday.
New Zealand's accommodation survey for April and electronic card transactions for May are scheduled for release by Statistics New Zealand this morning.
The New Zealand dollar was little changed at 77.87 Australian cents from 77.81 yesterday. The kiwi rose to 61.56 euro cents from 61.45 cents and dropped to 49.64 British pence from 49.90 pence. It sank to 61.04 yen from 61.83 yen.
1 Mar 2017 News
28 Feb 2017 Customs Minister Nicky Wagner is today congratulating Customs on a record number of drug seizures in 2016. “Customs... more
1 Mar 2017 Business News
28 Feb 2017 State Services Minister Paula Bennett has welcomed an agreement with unions which will see the Government’s new pay... more
21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES
14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more
11 Nov 2016 Property
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more
8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more
6 Feb 2017 NZ Tourism
8 Feb 2017 Does New Zealand celebrate halloween? Is Auckland a dangerous town- these are some of the subjects visitors Google... more
1 Mar 2017 Netball
VALE: Tania Dalton 1971-2017 March 1, 2017 The Netball community is deeply saddened to hear of the passing of Silver Fern... more
11 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more
10 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the US election outcome more
8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more
1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more
1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more