NZ dollar heads for 1.7% weekly gain in run-up to Greek poll   15 Jun 2012

Article - BusinessDesk

NZ dollar poised for 1.7% gain this week in run-up to Greek election

By Paul McBeth

June 15 (BusinessDesk) - The New Zealand dollar is heading for a 1.7 percent weekly gain in the run-up to the Greek election this weekend, which investors see as a make-or-break on the future of the Mediterranean nation's participation in the euro-zone.

The New Zealand dollar rose to 78.30 US cents at 5pm from 78.11 cents just before 8am, and 77.74 cents yesterday. The trade weighted index increased to 70.91 from 70.64 yesterday and is poised for a 1.9 percent gain.

Greek voters got to the booths on Sunday for the second time this year after failing to elect a government in April. Markets will be watching to see how Syriza performs, as the radical left-wing party has promised to renege on Greece's side of its bailout package. A final result won't be known until after markets have opened, while negotiations to form a coalition government will take longer.

"I don't think we're going to get an outcome of 'oh wow it's all over for Greece, they're out', we're going to get a result with varying degrees of uncertainty," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "The kiwi and the Aussie have picked up," on the growing view central banks will coordinate their actions if another crisis occurs, he said, referring to the trans-Tasman currencies colloquially.

That comes after New Zealand's Reserve Bank held the official cash rate at 2.5 percent yesterday, with Governor Alan Bollard stressing the European threat. The central bank gives a worst-case scenario a one-in-ten chance of happening, while Greece has a three-in-ten chance of leaving the euro-zone.

Finance Minister Bill English told the Wall Street Journal Asian central banks are pushing the kiwi dollar higher, and it may rise as high as 80 US cents. That matches the demand for the Australian dollar, as Germany emerged as a buyer for that currency earlier this week.

"New Zealand Australia are looking pretty good compared to a lot of other options - you get a positive real yield," Tennent-Brown said.

The New Zealand dollar rose to 61.96 euro cents from 61.77 cents yesterday, and gained to 50.39 pence from 50.06 pence. It was little changed at 78.09 Australian cents from 78.03 cents yesterday, and was little changed at 61.79 yen from 61.74 yen yesterday.

(BusinessDesk)

Add a comment

Bookmark and Share

News

First steps taken towards flag referendum

29 Oct 2014 News
New Zealand Government Rt Hon John KeyPrime Minister Hon Bill EnglishDeputy Prime Minister 29 October 2014 Cabinet has agreed on the... more

NZ to join global crackdown on tax evasion

29 Oct 2014 News
Revenue Minister Todd McClay today announced New Zealand’s timetable for participation in a global automatic exchange of... more

Business

NZ dollar holds gains as traders await central bank meetings

28 Oct 2014 Business News
By Paul McBeth Oct. 28 (BusinessDesk) - The New Zealand dollar held gains in the local trading session as traders remain cautious... more

Orion Health seeks up to $150mln, eschews forecasts

28 Oct 2014 Business News
By Fiona Rotherham Oct. 28 (BusinessDesk) - Orion Health Group, which develops software systems for patient health management, wants... more

Living

Duo wins MKR NZ by just one point

29 Oct 2014 Food & Wine
Neena and Belinda have won the first season of My Kitchen Rules New Zealand. The "Modern Day Hippies" beat Aaron and Heather in... more

MKRNZ - The WeedEaters are cleaning up

28 Oct 2014 Food & Wine
Modern Day Hippies Neena and Belinda breezed through the semi finals last night on My Kitchen Rules New Zealand and no one could be... more

Property

Goodman Property sells three Christchurch sites for $18.9M

28 Oct 2014 Property
By Suze Metherell Oct. 28 (BusinessDesk) - Goodman Property Trust, the biggest listed property investor by market value, sold two... more

Double-digit rate increases loom

24 Oct 2014 Property
Aucklanders living in the ‘hottest suburbs’ could be the big losers, while businesses will come out winners Rate rises... more

Migration

New Zealand Named The Best Place For Raising Children

24 Oct 2014 Migration
New Zealand has been named the best place to raise a child in the Raising Children Abroad annual league table. According to the HSBC... more

Desperate employers keeping overstayers

24 Oct 2014 Migration
Desperate employers seeking to fill job shortages are keeping migrant workers who previously held a work visa in New Zealand... more

Travel

Air New Zealand's GENIUS Hobbit themed safety video

24 Oct 2014 Travel & Tourism
Giving flyers an Unexpected Journey! Elijah Wood and Sir Peter Jackson star in 'epic' Hobbit themed Air New Zealand safety video Air... more

Travel 'interns wanted' to tour 2000km of NZ

24 Oct 2014 Travel & Tourism
Forget a summer internship of fetching coffee and photocopying - a travel company is offering a $30,000, 10-day, 2000km tour of New... more

Sport

NZ Rugby League: Matagi to debut against Samoa

29 Oct 2014 Rugby League
Vodafone Warriors prop Suaia Matagi is poised to play his first test for the NZ Kiwis against his old team-mates, Toa Samoa, at... more

Cancer Society named official charity for Cricket World Cup

28 Oct 2014 Cricket
ICC Cricket World Cup 2015 Cancer Society named official charity in New Zealand for ICC Cricket World Cup 2015 The Cancer Society has... more

Columns

The return of Occupy London: this time it’s truly political

28 Oct 2014 Opinion
Article - Adam Parsons The return of Occupy London: this time it’s truly political by Adam Parsons22 October 2014more

Gordon Campbell on the TPP finishing line, and Amazon’s woes

28 Oct 2014 Column
Column - Gordon Campbell Gordon Campbell on the TPP finishing line, and Amazon’s woes by Gordon Campbell If the Trans Pa... more

Kiwi Success

New Ambassador to France appointed

28 Oct 2014 Appointments
Minister of Foreign Affairs Foreign Minister Murray McCully has appointed diplomat James Kember as New Zealand’s next... more

Jim Hickey hangs up his umbrella

24 Oct 2014 People
Veteran weathercaster Jim Hickey has announced his retirement today, saying is was a tough decision. "I feel like I'm subbing off at... more

Recruitment

More than 600 take up 3K to Christchurch jobs

28 Oct 2014 Recruitment
Social Development Minister Anne Tolley says the Government’s 3K to Christchurch scheme is a winner with 633 unemployed people... more

UK ambulance service poaches Kiwi paramedics

24 Oct 2014 Recruitment
New Zealand paramedics are being poached by Britain's busiest ambulance service. Interviews were held in Auckland on Friday and... more