NZ dollar heads for 1.7% weekly gain in run-up to Greek poll 15 Jun 2012
- Investors Displeased by Central Banks Business
- Steel & Tube shares recover from 15-year low Business
- China Construction provides $140M cash infusion for NZ unit Business
- Restaurant Brands to kickoff home delivery of KFC Business
- Grant Samuel rolled out again to back Silver Fern Farms deal Business
- Stephen Copulos becomes 2nd largest shareholder in ARB Business
- Godfrey Hirst granted leave for narrow appeal Business
- Dip in June milk collection not as big as previously thought Business
- NZ staff turnover rising as balance tips Business
- NZ dollar little changed after RBNZ signals rate cuts Business
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.
23 Jul 2016 News
The Nation On The Nation: Lisa Owen interviews John Tamihere and David Seymour Youtube clips from the show are available
18 Jul 2016 Business News
Article - BusinessDesk Monday 18 July 2016 05:16 PM NZ caught in global backlash against Chinese steel imports July 18 (BusinessDesk)... more
13 Jul 2016 Business News
Article - BusinessDesk Wednesday 13 July 2016 03:10 PM Regulator, shareholder lobby welcome customer obligation for financial... more
18 Jul 2016 Lifestyle
The Outlook for Someday Young New Zealanders Making Films For Good What does sustainability mean to you? Since 2007 The Outlook for... more
21 Jul 2016 Property
Article - BusinessDesk Thursday 21 July 2016 04:55 PM UDATE: All five leading retail banks require 40% deposit from property ... more
30 Mar 2016 Migration
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more
12 Jul 2016 Travel & Tourism
Article - BusinessDesk NZ guest nights fell in May, snapping 25 consecutive monthly gains July 12 (BusinessDesk) - New Zealand guest... more
22 Jul 2016 Sport
Shearing Sports New Zealand NZ shearers in Wales July 21, 2016 World champion shearer Rowland Smith has become the fifth New... more
21 Jul 2016 Netball
Netball New Zealand Wellington A Black wins Netball NZ U17 Champs titleMedia ReleaseThursday 21 July, 2016The capital has, for the... more
7 Jul 2016 Opinion
Column - Gordon Campbell Gordon Campbell on Tony Blair and the Chilcot Report | werewolf more
14 Jun 2016 Opinion
Column - Gordon Campbell Gordon Campbell on our paltry refugee response and a brazen US rewrite of the TPP First published at... more
13 Jul 2016 Appointments
New Zealand Government Hon Christopher FinlaysonAttorney-General 13 July 2016 New Supreme Court and Court of Appeal ... more
7 Jul 2016 Recruitment
Article - BusinessDesk Fletcher chases 100 ex-pat Brits as construction sector faces capacity constraints July 7 (BusinessDesk) -... more