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

 


NZ dollar falls vs. euro after Greeks get sweeter deal

NZ dollar falls vs. euro after Greeks get sweeter deal on bail-out

Nov. 27 (BusinessDesk) - The New Zealand dollar fell versus the euro after Europe's finance chiefs gave Greece easier terms for its 130 billion euro bail-out in a bid to shore up the region's mounting sovereign debt problems.

The kiwi traded at 82.25 US cents at 5pm in Wellington from 82.14 cents at 8.30am and 82.40 cents yesterday. The currency fell to 63.36 euro cents from 63.57 cents yesterday.

The euro rose as much as 0.3 percent and recently traded at US$1.2982 after European finance ministers finally reached accord over how to grant Greece its next tranche of rescue funds after official sector investors in the Mediterranean nation's bonds, including the European Central Bank, balked on writing down their assets.

Euro-zone legislators agreed to cut the interest rates on loans to Greece, suspend interest payments for a decade and give the Mediterranean nation more time to repay its debt as well as setting up a bond buyback programme. Greece was also cleared to get a 34.4 billion euro loan instalment next month.

"They're looking at some pretty ugly numbers regardless," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. The muted response in the kiwi "might be a bit of 'buy the rumour sell the fact'," he said.

The kiwi dollar may have found some support from the final pricing and allocation of Fonterra Cooperative Group's shareholders' fund, which seeks to raise $525 million to reduce redemption risk for the dairy exporter. About 42 percent of the fund will go to overseas investors.

"That's a couple of hundred million and there might be more demand (when trading begins on Friday) as people missed out," Kelleher said.

Respondents in the Reserve Bank's survey of expectations sliced 20 basis points from their one-year median forecast for the consumer price index to 1.77 percent, below governor Graeme Wheeler’s long-term aim under the policy target agreement, and the two-year ahead median expectation at 2.3 percent, down by the same amount.

Government figures also showed a wider than expected trade deficit in October as dairy exports sank 20 percent. The deficit was $718 million last month from a revised gap of $775 million a month earlier, according to Statistics New Zealand. The annual deficit widened to $1.37 billion from a deficit of $880 million in the 12 months through September.

The trade-weighted index declined to 73.50 from 73.73 yesterday. The kiwi declined to 51.29 British pence from 51.42 pence and dropped to 78.48 Australian cents from 78.74 cents yesterday. It sank to 67.44 yen from 67.77 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news