Nov. 22 (Bloomberg) -- The Australia and New Zealand currencies dropped against the dollar after European finance ministers failed to agree on a debt-reduction plan for Greece, damping demand for higher-yielding assets.
The Aussie and kiwi dollars slid after a decline in Japanese imports dimmed the outlook for the South Pacific nations’ shipments. New Zealand’s currency dropped versus most major peers after Auckland-based Fonterra Cooperative Group Ltd. said whole-milk powder prices fell to a seven-week low.
Australia’s currency dropped 0.2 percent to $1.0369, and rose 0.8 percent to 85.55 yen. The New Zealand dollar fell 0.3 percent to 81.45 U.S. cents. It appreciated 0.7 percent to 67.22 yen.
Euro-area finance chiefs will meet again on Nov. 26, Luxembourg Prime Minister Jean-Claude Juncker said in a statement after chairing a meeting of the ministers. They are battling among themselves and with the International Monetary Fund to find 15 billion euros ($19 billion) through 2014 for Greece and provide the nation with a sustainable plan to cope with its debt.
Japan’s imports slid 1.6 percent in October from a year earlier, the nation’s Ministry of Finance said in Tokyo today. Shipments from Australia fell 0.9 percent, while those from New Zealand declined 5 percent. Japan is the second-biggest overseas market for Australia and fourth-biggest destination for New Zealand’s exports.
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