Bloomberg News

N.Z. Dollar Falls Third Day on Christchurch Rebuilding Concerns

June 26, 2011

June 27 (Bloomberg) -- The New Zealand dollar declined for a third day amid concern rebuilding in earthquake-hit Christchurch will be delayed, damping the nation’s economic recovery.

The currency reached a one-week low versus the U.S. dollar after interest.co.nz reported that Fletcher Building, New Zealand’s largest supplier of building materials, doesn’t expect rebuilding of damaged homes in Christchurch to start until aftershocks cease, citing Chief Executive Officer Jonathan Ling.

“Any economic boom and higher rates depended on the rebuild and it just appears to be more and more delayed,” said Tim Kelleher, vice-president of institutional banking and markets at Commonwealth Bank of Australia in Auckland. “The risk is probably for a weaker kiwi overall.”

New Zealand’s dollar fell to 80.74 U.S. cents as of 7:52 a.m. in Sydney from 81.18 cents in New York on June 24, and earlier touched 80.54 cents, the weakest since June 20. It declined 0.6 percent to 64.91 yen. Australia’s dollar traded at $1.0482 from $1.0491 last week. The currency fetched 84.29 yen from 84.37 yen.

--Editors: Garfield Reynolds, Edward Johnson

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net


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