NZ dollar falls as Greek deal stokes greenback

  • 14/07/2015

The New Zealand dollar has fallen as the prospect of Greece reaching a deal with its creditors soothed investors' concerns about global markets, stoking demand for the greenback.

The kiwi dropped to 66.73 US cents at 5pm in Wellington from 66.93 cents at 8am, and 67.31 cents today.

The trade-weighted index declined to 70.68 from 71.05 today.

Stocks across Asia rallied after an agreement between Greece and Europe's leaders will be taken back to the Greek parliament to ratify austerity measures in return for a bailout package, as early as tomorrow.

That stoked investors' appetite for risk-sensitive assets such as equities and eased fears the US Federal Reserve's plans to start raising interest rates this year would be derailed by global market turbulence.

"The US dollar rallied as risk came back to a certain degree, though it's more reflective in the stock markets than currencies," said Stuart Ive, senior dealer foreign exchange at OMF in Wellington.

"The kiwi and the Aussie have been sidelined here."

The kiwi dropped to 89.87 Australian cents from 90.42 cents today and to 4.1427 Chinese yuan from 4.1779 yuan, but gained to 60.65 euro cents from 60.45 cents and was little changed at 82.41 yen from 82.51 yen.