NZD

The New Zealand dollar fell against the greenback in the New York session on Friday, dropping well below the US83 cent level with markets nervous that the latest Greek austerity package could unravel when it's put to a parliamentary vote.

The kiwi recently traded at US82.58c, down from up from US82.58c at 5pm on Friday, snapping a two month rally. On the Trade Weighted Index of major trading partners' currencies it fell to 72.68 from 72.88.

The optimism surrounding the Greek austerity and debt swap deal appeared to run out of steam on Friday amid reports that the leader of Greece's far-right LAOS party, George Karatzaferis, would refuse to vote in favour of the measure. The party is part of the current governing coalition.

That sparked fears in the market that the deal could run into headwinds when it's placed before parliament later today, triggering a sharp slide in the euro, as well as growth currencies such as the kiwi and Australian dollar.

The sobering mood spread to equity markets, with the Standard & Poor's 500 Index posting its first weekly decline in five straight weeks, falling 0.2 per cent to 1342.64 on Friday. Meanwhile in Europe, the Stoxx 600 Index closed 0.9 per cent lower at 261.24.

"Offshore direction will be critical for the moves of the NZD this week," said Alex Sinton, a senior dealer at ANZ New Zealand. "Initially it should look to the hourly support channel around 82.34c as markets start to realise that implementation of the Greek bailout measures will be much harder than first thought."

On the crosses, the kiwi recently traded at 77.38 Australian cents, little changed from77.39 on Friday, and it fell to 64.10 yen from 64.42 yen. It was little changed at 62.57 euro cents, from 62.55 euro cents previously, and fell to 52.45 pence from 52.52 pence at 5pm on Friday.

The kiwi may trade between US82.34c and US82.94c today, Sinton said, with further declines likely.