Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar falls as Europeans struggle in Greek debt talks

NZ dollar falls as Europeans struggle in Greek debt talks, stock markets falter

By Paul McBeth

Nov. 27 (BusinessDesk) - The New Zealand dollar fell after stock markets faltered on news European finance chiefs were still at loggerheads over granting Greece its next round of bailout cash.

The kiwi fell to 82.14 US cents at 8.30am in Wellington from 82.40 cents yesterday. The trade-weighted index declined to 73.50 from 73.73.

Stocks on Wall Street and in Europe fell, with the Standard & Poor's 500 Index down 0.5 percent and France's CAC 30 falling 0.8 percent, as euro-zone finance ministers failed to cut a deal giving Greece its next tranche of an emergency loan.

The major sticking point appears to be whether the official sector, including the European Central Bank, will have to take a haircut on their Greek bond holdings. Earlier this year, the heavily indebted Mediterranean nation secured a 130 billion euro bailout to stave off default in exchange for harsh budget cuts.

"Markets are playing the waiting game still on Greece and investors' patience is starting to wear thin," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "Without any concrete agreement over Greece, it's clearly negative for market sentiment and currencies."

Markets are also waiting on the outcome of talks in the US between the Democrat-controlled White House and Republican-dominated House of Representatives to resolve the US$607 billion fiscal cliff of automatic tax hikes and spending cuts which kick in on Jan. 1.

"It looks like that story will drag on through December and into January and the markets are readjusting earlier optimistic view on that," Jones said.

Local trade figures are expected to show New Zealand's imports outweighed exports by $536 million in October, according to a Reuters survey of economists. If the deficit is smaller than expected, that could stoke demand for the kiwi dollar.

The Reserve Bank's survey of inflation expectations is also scheduled for release today, and will likely show New Zealand financial institutions pared back their outlook for price increases after a consumer price index in the third quarter.

The kiwi fell to 63.37 euro cents from 63.57 cents yesterday, and declined to 51.29 British pence from 51.42 pence. It dropped to 78.55 Australian cents from 78.74 cents yesterday, and sank to 67.49 yen from 67.77 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news