New Zealand Dollar Weaker But Paring Losses

 
   By Rebecca Howard 
 

        WELLINGTON, New Zealand--The New Zealand dollar took an early tumble after Greek voters rejected creditors' demands in a referendum, raising the likelihood that Greece could exit the eurozone, although the Kiwi pared some losses by the end of the session.
        The New Zealand dollar was at US$0.6680 in late Wellington trading, compared with US$0.6721 late Friday. It touched an early low of around US$0.6653. It was at 0.8933 Australian dollars versus A$0.8854 previously.
        More than 61% of Greeks voted "no" in Sunday's referendum on austerity measures and other overhauls that European and International Monetary Fund officials had demanded in recent talks-an outcome that spurred popular celebrations into the night across downtown Athens and other Greek cities.
        The Kiwi got a bit of a bounce after the early morning jitters as "the markets are all too aware the central banks are on red alert, highlighted today by comments from the Bank of Japan," said OM Financial senior client advisor Stuart Ive.
        Earlier Monday, in a rare statement apparently aimed at soothing concerns in financial markets after the closely monitored Greek vote, Bank of Japan Gov. Haruhiko Kuroda said: "The BOJ will continue to watch financial markets carefully while keeping close contact with relevant organizations at home and overseas."
        Mr. Ive said the European Central Bank is now poised to meet to discuss the emergency ELA funding of Greek banks and "if this funding is pulled it is the start of the end for Greece."
        German Chancellor Angela Merkel will fly to Paris on Monday for talks on Greece with French President Francois Hollande and investors are also waiting for comments from that meeting.
        Mr. Ive said the Kiwi is at risk of further moves lower but will likely hold for now.
        Write to Rebecca Howard at rebecca.howard@wsj.com; @FarroHoward
        (END) Dow Jones Newswires

        July 06, 2015 00:56 ET (04:56 GMT)

#FX
#Forex
#SaleForex
#NewZealandDollarWeaker
#ParingLosses
#Wellington
#EuroZone
#Grexit