Kiwi falls with euro on political uncertainties

Bloomberg

The kiwi and euro declined as weekend elections in New Zealand and Germany left the ruling parties facing tough negotiations to form coalition governments. The yen also fell on a report that Japan’s prime minister is planning a stimulus package.
New Zealand’s dollar weakened against all of its major peers after Saturday’s inconclusive election outcome left investors uncertain over who will lead the next government. The euro halted a two-day gain as German Chancellor Angela Merkel’s victory was marred by a worse-than-expected result that leaves her facing the most splintered parliament in the nation’s modern history.
In New Zealand, “there is a degree of uncertainty that could be around for another two-to-three weeks and markets don’t like uncertainty, period,” said Ray Attrill, global co-head of foreign-exchange strategy at National Australia Bank Ltd. in Sydney. “The euro’s weakness is understandable given the likely drawn-out process before a new government is formed.”
The yen fell after a report said Japanese Prime Minister Shinzo Abe is planning a 2 trillion yen ($18 billion) economic package. His ruling party held a commanding lead in polls released before his expected announcement of a snap general election on Monday.