Sharechat Logo

NZ dollar drops vs. euro after Greek upgrade, Spanish debt sale

Wednesday 19th December 2012

Text too small?

The New Zealand dollar fell against the euro as the common currency climbed against most of its trading peers after Standard & Poor's upgraded Greece and Spain managed to sell all the debt it targeted in its last auction of the year.

The kiwi dollar fell to 63.62 euro cents from 64.07 cents at 5pm yesterday in Wellington. The local currency fell to 84.15 US cents from 84.42 cents.

The euro gained to a seven-month high against the greenback after S&P lifted its credit rating on Greece to B- from selective default with a stable outlook. Meantime, Spain drew solid demand in its latest debt auctions, selling three-month bills at an average yield of 1.195 percent, down from 1.254 percent at a previous auction on Nov. 27.

"It's been a good night for the euro" on the back of the Greek upgrade, said Tim Kelleher, head of institutional FX sales at ASB Institutional. "The kiwi has been struggling in the past couple of days, with a bit of profit taking on the crosses. It had probably gone too far, too fast."

The New Zealand dollar may trade in a range of 83.90 US cents to 84.30 cents today, he said.

Traders are awaiting balance of payments figures for the third quarter later this morning, which are expected to show New Zealand's current account deficit widened to $4.83 billion in the three months ended Sept. 30 from $1.8 billion in the second quarter, according to a Reuters survey. The annual deficit narrowed to $9.83 billion, or 4.8 percent of GDP, from $10.1 billion, or 4.9 percent.

Tonight, traders will be looking at the release of Germany's IFO survey for more evidence of the strength of Europe's biggest economy.

The trade-weighted index slipped to 75 from 75.26. The kiwi fell to 51.79 British pence from 52.05 pence. It fell to 79.91 Australian cents from 80.02 cents and slipped to 70.85 yen from 70.93 yen.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar gains on G20 preference for growth
NZ dollar dips as Wellington CBD checked for quake damage
NZ dollar gains, bolstered by RBA minutes, strong dairy prices
NZ dollar falls after central bank says it may scale up currency intervention
NZ dollar gains before CPI, helped by dairy gains, rally on Wall Street
NZ dollar trades little changed as US budget talks bear down on deadline
NZ dollar falls with equities on view US to sail over fiscal cliff
NZ dollar weakens as fiscal cliff looms, long bets unwind
NZ dollar sinks to three-week low as equities fall, fiscal talks in focus
NZ dollar slips as fiscal cliff talks grind slower in Washington

IRG See IRG research reports