Bloomberg News

Australia, N.Z. Dollars Climb as Commodities Rise on Greek Vote

June 29, 2011

June 29 (Bloomberg) -- The Australian and New Zealand dollars rose versus the majority of their 16 most-traded peers as Greece approved an austerity plan to help head off the euro region’s first sovereign-debt default, boosting risk appetite.

The South Pacific currencies gained for a second day against the U.S. dollar as the Thomson Reuters/Jefferies CRB Index of raw materials climbed 1.4 percent to 339.03, the highest level in two weeks. The MSCI World Index of stocks increased 1.5 percent.

“Risk appetite has stabilized and commodities are firmer,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. “It was a big relief for the market; it looks like Greece is going to get its tranche to avert a default.”

The Aussie climbed 1.2 percent to $1.0669 at 11:40 a.m. in New York, from $1.0541 yesterday, and reached $1.0680, the strongest level since June 15. The currency rose 0.8 percent to 86.22 yen, after earlier increasing to 86.33 yen.

New Zealand’s dollar, nicknamed the kiwi, advanced 1.2 percent to 82.21 U.S. cents, from 81.21 cents. It appreciated 0.8 percent to 66.43 yen and touched 66.81 yen, the highest since June 1.

Greek lawmakers voted 155-138 to pass Prime Minister George Papandreou’s 78 billion-euro ($113 billion) package of budget cuts and asset sales, Parliament Speaker Filippos Petsalnikos said in remarks carried live on state-run Vouli TV. They vote tomorrow on an implementation law. The measures are needed for the nation to get a fifth installment from last year’s 110 billion-euro rescue and a second aid package.

--Editors: Greg Storey, Paul Cox

To contact the reporters on this story: Joe Ragazzo in New York at jragazzo@bloomberg.net; Candice Zachariahs in Sydney at czachariahs2@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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