Bloomberg News

Aussie Declines as Concern on Greece, U.S. Economy Damp Demand

June 13, 2012

Australia’s dollar fell against its U.S. counterpart as a drop in U.S. retail sales and concern Greece’s elections will disrupt the euro bloc reduced demand for assets linked to growth.

New Zealand’s dollar remained lower as the Reserve Bank of New Zealand left its benchmark interest rate at 2.5 percent. Greek politician Alexis Tsipras said he expects the European Union will do all it can to keep the nation in the euro even if he wins elections and carries out his promise to repeal austerity measures. Greece votes June 17.

The Aussie fell 0.3 percent to 99.34 U.S. cents yesterday in New York. It dropped 0.3 percent to 78.96 yen.

New Zealand’s dollar, nicknamed the kiwi, weakened 0.5 percent to 77.30 U.S. cents and fell 0.7 percent to 61.38 yen.

The median estimate of 16 economists in a Bloomberg News survey called for the RBNZ to leave rates unchanged.

Stocks weakened, with the MSCI World Index (MXWO) of equities falling as much as 5.3 percent, after the U.S. Commerce Department reported a 0.2 percent decrease in retail sales in May. The figure followed a similar decline in April that was previously reported as a gain.

To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net

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


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