Kiwi dollar troubled by Greek debt
By Tamsyn Parker
4:00 AM Saturday May 1, 2010

Greece's debt problems and the potential for them to spread to other European nations is likely to send the New Zealand dollar on a volatile ride and leave exporters facing a difficult European trading market, market commentators say.

BNZ currency strategist Mike Jones said the kiwi was a growth sensitive currency that got hit when investors became nervous.

"Any further deterioration [in Greece's debt problems] is likely to drag the New Zealand dollar lower [against the US dollar], particularly as it has been moving stronger in the last week and there is room for a correction."

While that was good news for exporters dealing in the US dollar it could make things a lot tougher for businesses exporting to Europe.

Jones said businesses that exported to Europe faced a double-whammy as the weaker euro would make it more expensive to buy New Zealand

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