NZ dollar falls vs pound as British sort out government
9:00 AM Wednesday May 12, 2010

The New Zealand dollar fell against the British pound throughout the early hours of the morning as speculation grew that Conservative leader David Cameron was close to becoming prime minister.

By 8am today, shortly after Cameron's position was confirmed, the kiwi was down to 47.97p from 48.48p at 5pm yesterday.

The New Zealand dollar also eased against the greenback and yen, while edging up against the euro as concerns about the euro zone's ability to contain a debt crisis blunted initial enthusiasm after a rescue package was announced.

At 8am the NZ dollar was buying US71.70c from US71.88c at 5pm, and was at 66.52 yen from 66.65 at the local close, along with 0.5654 euro at the local open from 0.5643.

The euro fell against other major currencies as investors wondered whether weaker euro zone economies can deliver the drastic spending cuts and tax increases needed to get their fiscal houses in order.

More here.