The New Zealand dollar fell after the leaders of the Group of Seven nations agreed to a coordinated response to Europe's deteriorating financial crisis, though gave no guidance on how to do so, leaving investors wary of a potential rescue.
The New Zealand dollar fell to 75.59 US cents at 8am from 75.82 cents yesterday at 5pm. The trade weighted index was unchanged at 69.15.
G7 leaders agreed to help Spain and Greece sort out their public finances following an emergency conference call today, though no decisive steps were made to aid the indebted nations.
The talks come less than two weeks before a Group of 20 nations summit that will take place as Greece holds its second general election this year, and Germany comes under increasing pressure to take more decisive action to protect the region.
"G7 will come into the conversation today but the reality is they can do a lot of talking but it comes down to implementation," said Alex Sinton, senior dealer at ANZ New Zealand. "There is no short term fix - until there is action nothing will change."
