Tuesday, April 27, 2010
The New Zealand and Australian dollars plunged against the Japanese Yen due to concerns over European Union aid package for Greece.
The New Zealand Dollar dropped against all major counterpart currencies post the reported news of German Chancellor Angela Merkel saying that she won’t release Greek rescue funds until the country shows protractible & convincing plan to cut its deficit. The Australian dollar also moved back from an 18-month high against the yen as majority of Asian stocks dropped. As per sources decision on aid for Greece would not be finalized till the time the International Monetary Fund works out a plan of cuts with the Government in Athens.
New Zealand’s dollar fell to 67.68 against yen from 67.97 yesterday, when it touched 68.31, the highest since January. The New Zealand dollar decrease 0.3 percent to 72.12 U.S. cents after reaching 72.56 yesterday, the highest since January.
Australian dollar dropped down to 92.58 U.S. cents from 92.69. The currency slid 0.3 percent to 86.87 yen after touching 87.77 yesterday, the strongest since Sept. 2008.
In a regional election rally in the western Germany Merkel said that the purpose of the aid is to ensure that Euro currency stabilize & they can not sit idle when their currency is under major threat.