Kiwi falls as finance ministers put off Greek bailout decision

The New Zealand dollar fell after European finance ministers failed to reach agreement on the next cash top-up for heavily indebted Greece, spooking investors, who were optimistic an accord would be reached.

The kiwi fell to 81.30 US cents at 5pm in Wellington from 81.56 cents at 8am and down from 81.86 cents yesterday. The trade-weighted index fell to 73.19 from 73.44 yesterday.

European finance chiefs left a meeting lasting more than 10 hours in Brussels without settling on an agreed way for Greece to get its next round of bailout funding, dashing hopes the Mediterranean nation had done enough to sway them.

The finance ministers cancelled a scheduled press conference and get back to the table on Monday.

"Surprise, surprise, the European finance ministers didn't solve all of the problems in the world," says Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "The market was built up for something a little more exciting than that."

Traders were already backing away from the kiwi and Australian dollars after the RBA minutes for the November 6 meeting showed the central bank may cut the target cash rate to reinvigorate a slowing economy.

"Traders took a little bit off the Australian dollar" after the RBA minutes and a lack of Australasian data kept things quiet today, says Michael Johnston, a trader at HiFX in Auckland. "The kiwi's drifting a little lower."

The kiwi fell to 63.73 euro cents from 63.90 cents yesterday and to 51.06 British pence from 51.43 pence. It slipped to 78.51 Australian cents from 78.57 cents yesterday and was little changed at 66.54 yen from 66.50 yen.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.8012 0.0052 0.65%
AUD 0.9077 0.0006 0.07%
EUR 0.6252 0.0028 0.45%
GBP 0.4952 0.0024 0.49%
HKD 6.2173 0.0415 0.67%
JPY 85.2240 0.1390 0.16%

Commods

Commodity Price Change Time
Gold Index 1244.2 5.700 2014-10-20T00:
Oil Brent 85.4 -0.760 2014-10-20T00:
Oil Nymex 82.8 -0.040 2014-10-20T00:
Silver Index 17.3 0.020 2014-10-20T00:

Indices

Symbol Open High Last %
NZX 50 5197.9 5238.9 5197.9 0.68%
NASDAQ 4254.2 4316.9 4258.4 1.35%
DAX 8819.3 8834.7 8850.3 -1.50%
DJI 16373.1 16401.6 16380.4 0.12%
FTSE 6310.3 6320.3 6310.3 -0.68%
HKSE 23073.4 23231.5 23070.3 -0.25%
NI225 15115.3 15115.3 15111.2 -1.66%