Dollar recovers after knee-jerk decline on Greece concerns
Kiwi gained to 68.60USc at 8am in Wellington.
Hot Topic
Hawke’s Bay
The New Zealand dollar advanced overnight following a knee-jerk decline yesterday after no agreement was reached between Greece and its creditors at the weekend.
The kiwi gained to 68.60USc at 8am in Wellington, from 68.33USc at 5pm yesterday and 68.15USc at 8am yesterday. The trade-weighted index was little changed at 71.70 from 71.69 yesterday.
Even though Greece isn't expected to make a €1.55 billion payment to the International Monetary Fund due today, currency markets overnight unwound some of the immediate rush out of the euro, which also benefited the kiwi. Meanwhile, European leaders said Greece's planned referendum vote on the bailout plan this weekend was a choice for Greek voters on remaining with the euro.
"Markets unwound some of their initial 'knee-jerk' response following the breakdown in negotiations between Greece and its creditors," ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. "Market serenity has returned, viewing the contagion impacts of Greece's actions as being limited."
ANZ expects the kiwi to trade between 68.10-69.30USc today.
May building consent data and ANZ's monthly business confidence survey are scheduled for release today.
The New Zealand dollar sank to 60.99 euro cents from 62.05 cents yesterday, weakened to 89.22Ac from 89.31Ac, edged higher to 43.60 British pence from 43.50p and rose to ¥84.02 from ¥83.79.
(BusinessDesk)
Tina Morrison
Tue, 30 Jun 2015
Tue, 30 Jun 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Dollar recovers after knee-jerk decline on Greece concerns
49084