New Zealand Dollar Struggles Against Risk Aversion

 
  By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar struggled to gain ground against the U.S. dollar Wednesday as risk aversion took hold.
        The New Zealand dollar is seeing "continued weakness" on the Greek fallout and the sharp fall in Chinese share markets, said Murray Hindley, foreign-exchange manager at ANZ. "It's a continued risk-off move."
        Mr. Hindley said there would be some focus on the Federal Open Market Committee minutes later in the global trading day, which is likely to be overshadowed by further developments out of Greece.
        Markets remained jittery as eurozone leaders set Greece a Sunday deadline to reach a new financing deal that Germany said would have to include even more economic overhaul measures than before.
        For both the New Zealand and Australian dollar, however, worries over China's growth outlook and the continued tumble in Chinese equity markets even as Beijing scrambles to arrest the selloff are likely bigger concerns, said Mr. Hindley.
        China has introduced fresh measures to restore investor confidence, but stocks and Chinese bonds traded offshore--even high-quality corporate bonds issued by top state-owned companies--are getting dumped. China's yuan, freely traded in the offshore market, hit a four-month low against the U.S. dollar amid a gloomier outlook for the world's second-largest economy.
        The New Zealand dollar was at US$0.6644 in late Wellington trading, compared with US$0.6663 late Tuesday. It was at 0.8964 Australian dollars versus A$0.8900 previously.
        Write to Rebecca Howard at rebecca.howard@wsj.com; @FarroHoward
        (END) Dow Jones Newswires

        July 08, 2015 01:40 ET (05:40 GMT)

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