Dollar mixed on concern over Greece bailout

The New Zealand dollar was mixed today and investors digested conflicting reports about the likelihood of a bailout for Greece's finances.

The euro rose against the yen and the Australian dollar rose as risk aversion was lowered by the speculation of a solution to Greece's problems.

The Wall Street Journal, citing unnamed sources, said a loan guarantee plan would be led by Germany but completed along with European Union partners.

- REUTERS reported that European governments have agreed in principle to help Greece. But there were also reports that a decision had not been made.

By 5pm the NZ dollar was trading at US69.37c, from US69.44c at 8am and US68.54c at 5pm yesterday.

Overnight it peaked at US69.66c as it drove upwards from yesterday's low of US68.15c.

The NZ dollar fell yesterday in response to the Government's tax proposals but exporters took the opportunity to put in cover at lower levels and the currency rose from lows.

The speculation about Greece was the main theme in currency markets today, said Mike Jones, currency strategist at BNZ.

"There's been a lot of media reports and rumours swirling around about whether or not they are going to get a bailout," he said.

"Kiwi has really just been buffeted in line with the moves we have seen in the euro," he said.

The NZ dollar gained against the euro to 0.5041 from 0.5009 yesterday.

The euro eased today in Asian trading, giving up gains previously on hopes of a solution for Greece's financial problems.

Against the Australian dollar, the NZ dollar was at A79.26c at 5pm from A79.53c at the same time yesterday.

The NZ dollar was at 62.23 yen from 61.28 yen yesterday.

The trade weighted index rose to 64.30 from 63.74 yesterday.

- NZPA