• Full Story

NZ dollar falls as ECB lending disappoints

Print

Thu, 22 Dec 2011 9:56a.m.

The Kiwi dollar fell to 59.88 yen from 59.94 yen yesterday

The Kiwi dollar fell to 59.88 yen from 59.94 yen yesterday

The New Zealand dollar has fallen amid concern European Central Bank lending support for the region's banks won't be enough to contain the debt crisis.

The Kiwi dollar fell to 76.68 US cents just before 8am, from 77.03 cents at 5pm on Wednesday. It reached a high of 77.71 cents overnight.

The European Central Bank lent 489 billion euros to 523 banks at 1 percent, giving them access to cheap cash so they can continue extending credit to companies and households, though the move underwhelmed financial markets.

Figures on Thursday morning are expected to show the New Zealand economy accelerated to a 0.6 percent pace in the third quarter, having almost stalled three months earlier.

"Everybody is expecting a positive (GDP) number on the basis of the Rugby World Cup. It's one event though so we aren't going to get too carried away with it," said Dan Bell, senior currency strategist at HiFX.

The Kiwi dollar fell to 59.88 yen from 59.94 yen yesterday. It was little changed at 58.80 euro cents from 58.76 cents and 76.17 Australian cents from 76.12 cents

The trade-weighted index eased to 68.69 from 68.77.

NZN

Become a fan of 3 News on Facebook and on Twitter.

Post a Comment

Before commenting, please take the time to read our moderation guide


(Won't be published)



Comments

26 Dec 2011 02:13p.m.

WhoKnew wrote:

The ECB use NZ as collateral, When it fails NZ will be on the market lock stock and barrel, The ones with the biggest guns wins.