NZ dollar heads for 1.7% weekly gain in run-up to Greek poll 15 Jun 2012
- Fonterra raises Australian farmgate milk price Business
- NZ Oil & Gas make leadership announcement 'in coming days' Business
- Fugitive Simon Turnbull pleads guilty to mortgage fraud Business
- Wynyard Shareholders to join class action Business
- Starrenburg named to Takeovers Panel Business
- 'Complex' EQC law review set to drag on into next year Business
- Freightways 1st-qtr profit gains 9.9% on flourishing economy Business
- NZ trade deficit widens to a record in September Business
- Lake McKay Station up for sale Business
- BNZ annual earnings slip 3.4% on lower trading income 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 Oct 2016 News
New Zealand Government Hon Simon Bridges Minister of Energy and Resources 23 October 2016 Media Statement Bridges to attend... more
12 Oct 2016 News
New Zealand Government Hon Anne TolleyMinister for Social Development 12 October 2016 $4.2 million Community Finance boost to... more
18 Oct 2016 Business News
Article - BusinessDesk Tuesday 18 October 2016 11:00 AM NZ inflation slows to 0.2% pace in third quarter, beating estimates, as... more
18 Oct 2016 Lifestyle
818 Entertainment KIWIS GET FIRST PEEK AT THE ALL NEW BLONDINI GANG WITH RELEASE OF OFFICIAL PORK PIE TRAILER more
12 Oct 2016 Lifestyle
NZSO 12 October 2016 - NZSO media release for immediate release NZSO welcomes Dutch piano virtuoso Ronald Brautigam to NZ The NZSO... more
12 Oct 2016 Property
Article - BusinessDesk Wednesday 12 October 2016 08:19 AM Auckland development blowouts reminiscent of run up to GFC: KPMG's ... more
3 Aug 2016 Property
Wednesday 03 August 2016 10:30 AM Auckland house prices are stabilising, may have plateaued, Barfoot says Aug. 3 (BusinessDesk) -... more
21 Oct 2016 Migration
Article - BusinessDesk Friday 21 October 2016 11:23 AM NZ migration, tourism hits new highs in September, driven by record... more
11 Oct 2016 Migration
Article - BusinessDesk Tuesday 11 October 2016 03:13 PM UPDATE: Immigration policy tweaks capture senior executive migrants (Recasts ... more
12 Oct 2016 Travel & Tourism
Article - BusinessDesk Wednesday 12 October 2016 05:25 PM Air NZ sells remaining stake in Virgin Australia Oct. 12 (BusinessDesk) -... more
12 Oct 2016 NZ Tourism
12 October 2016 International visitor guest nights have risen by more than 13 per cent, and eleven of our twelve... more
24 Oct 2016 Rugby
The Black Ferns have continued their trans-Tasman superiority, crushing the Wallaroos 67-3 at Eden Park. In a dominant display the... more
24 Oct 2016 Rugby
New Zealand’s rugby community is mourning the loss of former All Black Wally Argus, who passed away this week in... more
18 Oct 2016 Opinion
Column - Gordon Campbell Gordon Campbell on plastic bag activism, and street harassment
11 Oct 2016 Opinion
Gordon Campbell on how the political centre is a mirage First published on Werewolf more
21 Oct 2016 Appointments
New Zealand GovernmentHon Steven Joyce Minister for Tertiary Education, Skills and Employment 21 October 2016 Appointments to... more
19 Oct 2016 Recruitment
Article - BusinessDesk Wednesday 19 October 2016 09:09 AM AWF Madison buys Absolute IT for $15.3mn, expanding further into white... more