The New Zealand dollar held near a four-month low as Greek politicians struggled to form a new government, heightening speculation the nation may leave the euro and sapping risk appetite.
The New Zealand dollar traded at 78.46 US cents just before 8am, little changed from 78.43 cents yesterday at 5pm.
The trade weighted index rose to 70.5 from 70.45.
Political turmoil in Greece looks set to enter a fourth day, with coalition talks in deadlock, raising the possibility of a second election next month. Both the New Democracy party and the second-ranked Syriza party have failed to form alliances. The European Financial Stability Facility, anxious to keep the Greeks on track, has confirmed the release of 5.2 billion euros from its first installment of 39.4 billion euros ear-marked for the nation at the end of June.
"If you weigh it all up and we have a day of consolidation - there could be a squeeze up towards the end of the week," said Alex Sinton, senior dealer at ANZ New Zealand. "Relatively speaking the kiwi isn't that bad."
"Unless the Greeks accept the reality that they have to make some structural changes it's difficult to see someone coming to bail them out," Sinton said.
