Posted On: June 13, 2012
South Pacific currencies lost value against the U.S. dollar on Wednesday as worries grow about the second presidential election set for Sunday in debt-hobbled Greece, Bloomberg reports
Both dollars from Australia and New Zealand were on the wane. The Aussie dropped against the majority of its 16 counterparts after central bank governor Glenn Stevens indicated the country's exchange rate
is elevated. The Kiwi slipped before policy makers with the Reserve Bank of New Zealand convene on Thursday, when they are likely to leave borrowing costs intact.
"Markets are going to be nervous up until the Greek election," economist Janu Chan with St. George Bank in Sydney told the news service. "Aussie is keeping just below parity because of these concerns."
At play for the two-time bailout recipient in the euro zone is the election of leadership who will abide by deep austerity measures to ensure the Aegean nation receives the tranches of aid. Otherwise, Greece faces the prospects of defaulting on financial obligations and its membership the 17-nation bloc will fall under further scrutiny.
Stevens advised businesses to redouble efforts of increased generation as one strategy of dealing with the high value of the Aussie, ABC News reports
Category: Industry News
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