24 Jan 2012

NZ dollar rising

12:33 pm on 24 January 2012

The New Zealand dollar has risen slightly against its US counterpart, as European officials put more pressure on Greece to solve its debt crisis.

The kiwi rose to 81.4 US cents overnight on Monday, the highest since early November. It has since slipped a little and was trading at 81.1 US cents at midday on Tuesday.

ANZ Global Markets senior dealer Alex Sinton says demand for the kiwi was reasonably solid over the Christmas and New Year period and it continues to edge up as hopes grow that a solution to Greece's debt crisis will be found.

He says the dollar could remain volatile in coming days, especially before a review of the Official Cash Rate by the Reserve Bank of New Zealand on Thursday and the release of the US Federal Reserve's interest rate forecasts.

However, Greece may not make a final offer to its private sector coverage for another three weeks.

Reuters says negotiations could continue until 13 February.

The Institute of International Finance, which represents the creditors, say their best offer is already on the table and they can't afford to give up any more ground.

It was previously reported Greece and its private creditors had been inching towards a deal in which private creditors would take a real loss of 65% - 70%.