BENHAR: The New Zealand dollar touched a fresh record high against the euro amid mounting concerns that Greece may exit the common currency as it fails to make progress in reaching agreement on its debt repayments.
The kiwi touched 71.53 euro cents and was trading at 71.15 cents at 8am in Wellington, from 71.01 cents at 5pm yesterday. The local currency reached a three-month high of 76.97 US cents and was recently trading at 76.64 cents from 75.94 cents yesterday as traders pushed out expectations for a US rate hike following a slew of weaker economic data.
Greek bond yields soared yesterday after the Financial Times reported that the International Monetary Fund earlier this month had rebuffed an informal approach by Greece to delay pending loan repayments. European officials such as IMF chief economist Olivier Blanchard are highlighting the possibility of a Greek exit from the Eurozone, saying this week that for the rest of the Eurozone a Greek exit “would not be smooth sailing, but it could probably be done”, the FT reported.
