The kiwi is poised for a 1.4% decline this week as the Greek Parliament struggles to form a coalition government almost a week on from its election, sapping investors' appetite for risky assets.
BUSINESSDESK: The kiwi is poised for a 1.4% decline this week as the Greek Parliament struggles to form a coalition government almost a week on from its election, sapping investors' appetite for risky assets.
The New Zealand dollar fell to 78.45 US cents at 5pm from 78.56 cents at 8am and 78.60 cents yesterday.
The trade weighted index was little-changed at 70.50 from 70.54.
Greek politicians has entered its fifth day of coalition talks as politicians struggle to form a new government, with the two major parties, who brokered the regional bailout, failing to secure enough votes to govern.
The European Union has agreed it will continue sending money to the indebted nation under the terms of its two bailouts negotiated since May 2010.
“The EU has no option – they want to make the most out of a bad thing,” said Stuart Ive, currency strategist at HiFX. “They want it sorted out.”
Investors will be eyeing the sale of Italian, Spanish and French government bonds next week to see whether the region’s debt crisis is continuing to worsen.
Italy will sell notes on Monday, followed by Spanish and French debt sales on Thursday.
It will be the first French auction since Francois Hollande defeated incumbent Nicolas Sarkozy as president last Sunday.
"I think the French auction will be by the buy – the focus will be on Italy and Spain without a doubt," Mr Ive said.
"People at the moment are happy to sacrifice yield for quality."
In China, New Zealand's second-largest trading partner, inflation rose at its slowest pace since 2009, heightening speculation Premier Wen Jiabao will be forced to stimulate the economy.
The Consumer Price Index rose 3.4% from a year earlier, following a 3.6% annual gain in March, according to government data.
New Zealand data released today had little effect on the currency, with the food price index falling 0.1% in April as consumers paid less for soft drinks and supermarket shopping, says Statistics New Zealand.
Electronic card figures also out today, snapped two months of declines, rising 0.6% to $5.46 billion last month, Statistics NZ said.
The New Zealand dollar rose to 77.92 Australian cents from 77.75 cents yesterday.
The kiwi was little changed at 60.68 euro cents from 60.69 cents and was unchanged at 62.62 yen.
It slipped to 48.66 British pence from 48.71 pence yesterday.
