JASON KRUPP Last updated 08:18 31/01/2012
The New Zealand dollar slipped below US82 cents overnight, amid fears European officials will not be able to usher in a Greek debt deal, prompting investors to shift out of the euro towards the safe haven appeal of the greenback.
The kiwi recently traded at US$82.10 cents, down from US$82.10c at 5pm yesterday, and fell to 72.16 on the Trade Weighted Index of major trading partners' currencies from 72.19.
The protracted deadlock between Greece and its private sector creditors over the level of writedowns on longer dated bonds saw the European single currency slip from a six-week high against the US dollar to recently trade at US$1.3127, down from its recent peak of US$1.3228.
Sentiment was not helped after Greek Finance Minister Evangelos Venizelos lashed out at a proposal to place the country's budget under central European control in return for further bailouts. That sparked fears that policymakers would lose the momentum needed to tackle the sovereign debt crisis.
"The kiwi backed off a little with the European situation not helping things," said Alex Sinton, a senior dealer at ANZ. "There is no solution on Greece and Portugal is looking like the next cab on the European debt rank with no passengers to pick up."
The pullback in risk appetites play out on global equity markets, with the Standard & Poor's 500 Index trading 0.6 per cent lower at 1308.86 in afternoon trade, while Europe's Stoxx 600 Index closed 1.1 per cent to 252.52.
On the crosses, the kiwi recently traded at 77.42 Australian cents, up from A77.38c yesterday, and it fell to 62.54 yen from 62.88 yen. It rose to 62.46 euro cents from 62.20 euro cents previously, and gained to 52.27 pence from 52.21 pence at 5pm.
The kiwi may trade between a range of US81.47c and US82.12, Sinton said, with the current correction looking like a mild one with further gains likely later in the week.
- © Fairfax NZ News
http://www.stuff.co.nz/business/market-data/currencies/6339187/NZ-dollar... KRUPP Last updated 08:18 31/01/2012
The New Zealand dollar slipped below US82 cents overnight, amid fears European officials will not be able to usher in a Greek debt deal, prompting investors to shift out of the euro towards the safe haven appeal of the greenback.
The kiwi recently traded at US$82.10 cents, down from US$82.10c at 5pm yesterday, and fell to 72.16 on the Trade Weighted Index of major trading partners' currencies from 72.19.
The protracted deadlock between Greece and its private sector creditors over the level of writedowns on longer dated bonds saw the European single currency slip from a six-week high against the US dollar to recently trade at US$1.3127, down from its recent peak of US$1.3228.
Sentiment was not helped after Greek Finance Minister Evangelos Venizelos lashed out at a proposal to place the country's budget under central European control in return for further bailouts. That sparked fears that policymakers would lose the momentum needed to tackle the sovereign debt crisis.
"The kiwi backed off a little with the European situation not helping things," said Alex Sinton, a senior dealer at ANZ. "There is no solution on Greece and Portugal is looking like the next cab on the European debt rank with no passengers to pick up."
The pullback in risk appetites play out on global equity markets, with the Standard & Poor's 500 Index trading 0.6 per cent lower at 1308.86 in afternoon trade, while Europe's Stoxx 600 Index closed 1.1 per cent to 252.52.
On the crosses, the kiwi recently traded at 77.42 Australian cents, up from A77.38c yesterday, and it fell to 62.54 yen from 62.88 yen. It rose to 62.46 euro cents from 62.20 euro cents previously, and gained to 52.27 pence from 52.21 pence at 5pm.
The kiwi may trade between a range of US81.47c and US82.12, Sinton said, with the current correction looking like a mild one with further gains likely later in the week.
- © Fairfax NZ News
http://www.stuff.co.nz/business/market-data/currencies/6339187/NZ-dollar-dips-below-US82-cents
