The New Zealand dollar held near a 5-month high against the greenback and near a record versus the euro following better-than-expected US jobs data and concerns Greece's political leaders will fail to reach the conditions of a 130 billion euro bailout.
The New Zealand dollar traded at 83.33 US cents up from 83.15 cents yesterday. The kiwi dollar rose as high as 63.77 euro cents, the second-highest level since the currency entered circulation in 2002. It traded at 63.46 shortly after 8.30 am.
Sentiment has deteriorated in Europe, with private creditors and Greek's politicians yet to agree on bailout terms. Meetings have been postponed another day, irking lenders and prompting German leader Angela Merkel to demand that Greece's leaders fall into line.
If Greece defaults, "there would be a risk off scenario with the kiwi coming under pressure initially," said Stuart Ive, currency strategist at HiFX. "Time is running out - with Greece stalling for another 24 hours."
"Greek politicians could agree to the deal but they still have to go home and tell the people and that is where the issue lies," Ive said.
