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

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news