Business

THE NEWS WRAP: Aussie dollar could collapse if Greece exits the euro zone

Oliver Milman /

The Australian dollar could be pushed lower than 90 US cents if Greece pulls out of the euro zone, a currency analyst has warned, as G8 leaders met in an attempt to resolve Europe’s financial woes.

 

Richard Grace, the chief strategist at Commonwealth Bank, said that the increasingly likely scenario of Greece pulling out of the euro would see the Australian dollar dip below 90 US cents, while a “disaster” scenario of Italy and Spain also leaving the currency could see a fall below 70 US cents.

 

Retravision stores to remain open despite southern woe

 

Retravision has insisted its stores in Victoria, Tasmania and New South Wales will continue to operate, despite rumours that its franchise support arm for the region was set to enter administration.

 

Retravision Southern, based in Victoria, is facing severe cashflow problems following an 8.1% fall in profits in 21011. However, Retravision said it was “business as usual” for its stores in the southern states.

 

Retail spending up, but slowing

 

Retail spending rose for the ninth consecutive month in April, new figures show, although the rate of growth is slowing.

 

The Commonwealth Bank Business Sales Indicator was up 0.5% in April, following a 0.8% increase in March.

 

Markets

 

The Dow Jones Industrial Average dropped 73.11 points to close at 12,369.38 on Friday. The Australian dollar was down to 98.39 US cents.

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