NZ Dollar Drops Following Greek Bailout

The New Zealand dollar fell after European Union finance ministers handed Greece a 130 billion euro lifeline to avoid bankruptcy in March, the New Zealand Herald reported.

The New Zealand dollar dropped to as low as 82.62 US cents from 83.25 cents Wednesday at 5pm. It traded at 82.97 cents at 8am in Wellington. The kiwi fell to 62.62 euro cents from 62.94 cents.

Both the US dollar and the euro have strengthened against the kiwi after European Union finance ministers handed Greece a 130 billion euro lifeline to avoid bankruptcy in March.

The package was secured on pledges for greater austerity and a 53.5 percent haircut for private bond investors, the Herald reported.

The New Zealand dollar slipped to 77.91 Australian cents from 78.13 cents, while it rose to 52.95 British pence from 52.71 pence.