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

Royal succession laws come into force

26 Mar 2015 News
Legislation modernising rules applying to Royal succession to the throne came into force today in New Zealand and in the 16 Realms... more

McCully visits Iraq ahead of NZ deployment

24 Mar 2015 News
  Foreign Minister Murray McCully travelled to Baghdad yesterday for talks with Iraq’s Prime Minister Mr Haider al-Abadi... more

Business

NZ milk powder futures drop as Fonterra lifts GDT volumes

27 Mar 2015 Business News
Article - BusinessDesk   NZ milk powder futures drop as Fonterra lifts GDT volumes, signalling prices will fall By Tina ... more

NZ commercial property lending less risky now: RBNZ

26 Mar 2015 Business News By Fiona Rotherham
  NZ commercial property lending less risky now due to lower debt funding March 26 (BusinessDesk) - The Reserve Bank said New... more

Living

2degrees lights up Auckland Harbour Bridge in World First

13 Mar 2015 Lifestyle
Fusing light, music, mobile and one of Auckland’s most recognisable landmarks together – 2degrees launched another Kiwi... more

Third Thursday Set to Groove

9 Mar 2015 Lifestyle
The sounds of legendary jazz musician Charles Mingus is set to raise the beat of Wellington’s waterfront on 19 March, when the... more

Property

NZ house prices rise 3.6% in February

12 Mar 2015 Property By Tina Morrison
  NZ house prices rise 3.6% in February, led by a 14% jump in Auckland prices March 12 (BusinessDesk) - New Zealand residential... more

Revealed: Auckland's cheapest suburbs

9 Mar 2015 Property
Many home buyers face long commute to Auckland jobs as they move to Wellsford, Pokeno and Hamilton. Only six areas of Auckland still... more

Migration

PM plays down claim war criminals are living in NZ

2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more

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

Travel

Foss welcomes agreement for rental vehicle code

17 Mar 2015 Travel & Tourism
Associate Transport Minister Craig Foss is welcoming a move by the rental vehicle industry to establish a Code of Best Practice to... more

Productive discussions on Queenstown’s tourism workforce

6 Mar 2015 Travel & Tourism
Sustainable workforce solutions were at the centre of discussions between Government Ministers and tourism industry representatives... more

Sport

ICC World Cup 2015: Sunday doesn’t guarantee success but it gives the greatest chance, says McCullum

28 Mar 2015 Cricket
Q. Who won the real battle of big brother against little brother?BRENDON McCULLUM: I think he won, but I definitely had some mad... more

ICC World Cup 2015 Match official appointments for final announced

28 Mar 2015 Cricket
The International Cricket Council today announced the match official appointments for the final of the ICC Cricket World Cup 2015,... more

Columns

ICC World Cup 2015: STEPHEN FLEMING: YES, NEW ZEALAND CAN!

28 Mar 2015 Opinion
Former New Zealand captain says the team will be focusing on enjoying themselves, knowing they are part of something that will be the... more

Gordon Campbell on a funeral in Asia and Northland

27 Mar 2015 Opinion By Gordon Campbell
  Gordon Campbell on a funeral in Asia, the Northland by-election, and news priorities Supposedly, New Zealand’s destiny... more

Kiwi Success

Tower names Seniors Money's Brett Wilson as CFO

18 Mar 2015 Appointments
  Tower names Seniors Money's Brett Wilson as CFO, replacing Boggs March 18 (BusinessDesk) - Tower, the listed general insurer,... more

Kiwi start-up Glassjar launches payments app in the US

6 Mar 2015 People
Glassjar, the kiwi software start-up whose app provides people an easy way of sharing bills, has launched in the United States. The... more

Recruitment

NZ Government moves to strengthen employment standards

26 Mar 2015 Recruitment
Workplace Relations and Safety Minister Michael Woodhouse today announced a package of measures to strengthen enforcement of minimum... more

RESEND: 63% of Warehouse permanent staff now on career wage

20 Mar 2015 Recruitment By Fiona Rotherham
  RESEND: Warehouse says 63% of permanent staff now on 'career retailer wage' (Fixes fourth paragraph to show Warehouse is... more