NZ dollar down vs euro after Greek aid approved

The New Zealand dollar opened the week stronger against the greenback and yen, but fell against the euro which extended its recovery after German lawmakers and the International Monetary Fund approved rescue packages for Greece.

By 8am today the kiwi was buying US72.04c, up from US71.16c at 5pm on Friday and from around US71.45c at 9am on Saturday.

The NZ dollar was also up to 66.61 yen at 8am today from 65.56 at 5pm on Friday and from 65.40 yen at 9am on Saturday.

Against the European currency the kiwi was down to 0.5587 euro at 8am today from 0.5603 at 5pm on Friday and 0.5622 shortly before 9am on Saturday.

While the euro was boosted by approval of the rescue packages for Greece, the US dollar gained versus the yen after data showed employment in the United States grew at its fastest pace in four years.

Meanwhile, European Union finance ministers promised to do everything to defend the euro against the "wolfpack" of the financial markets at talks on emergency measures to stop Greece's debt crisis spreading.

But EU sources said a deal was proving elusive as Germany, which faces public opposition to bailouts, resisted the terms of a proposal for a larger-than-expected sum to be made available if states such as Spain or Portugal need help.

Westpac's Imre Speizer said it was possible the NZ dollar could push to US72.50c today. All eyes would be on the EU packaged expected today, although some pre-emptive pricing had already happened.

Against the Australian dollar, the kiwi was up to A80.39c at 8am today from A79.94c at 5pm on Friday, while the trade weighted index lifted to 68.19 at 8am from 67.76.

- NZPA