NZ dollar down after euro news
The New Zealand dollar fell against the greenback today as markets processed the news of more bail out calls from indebted Spain.
There were also rumours Greece could lost some of its support, and a flat outlook locally for tomorrow’s cash rate announcement.
The kiwi recently traded at US79.38c, down from US79.73c in the morning.
HiFX dealer Michael Johnston said there was not a lot happening in trading of the kiwi today since the morning session began.
‘‘Everything happened over the weekend, it’s been very quiet today. The kiwi was drifting down as the markets absorb the news Valencia, one of the regions in Spain, needs a bail out,’’ Johnston said.
‘‘Also the news the International Monetary Fund is thinking abut ending its support for Greece on top of news the European Central Bank won’t accept Greek bonds as collatoral anymore. It was all fairly negative in contrast to the last few weeks.’’
On the crosses, the kiwi was trading at 76.95 Australian cents, up from A76.88c earlier. It was at 62.08 Japanese yen, down from 62.52 yen earlier. It was at 50.95 pence, down from 51.08 pence. It was at 65.51 euro cents, down from 65.79 euro cents earlier.
Tomorrow, outgoing Reserve Bank governor Alan Bollard is giving his final official cash rate announcement, which Johnston expected to be flat.
Johnston expected the kiwi to trade between US70.00c and US70.80c overnight, with a bias towards the downside.
- © Fairfax NZ News