Forex Blog: Currency Trading News & Analysis.

July 27th 2005

New Zealand Dollar may reverse course

The New Zealand Dollar-or Kiwi- has recently underperformed almost every industrialized currency, and has been dubbed “the dog of the currency world.” However, several developments have induced optimistic forecasts from economists and experts, who predict a period of NZD appreciation. First, the revaluation of the Yuan has generated broad levels of support for ‘Pacific’ currencies. Next, real economic growth and inflation in New Zealand continue to climb, which may force the Bank of New Zealand to forestall its planned rate cuts. At 6.75%, New Zealand interest rates are currently the highest among developed nations. As a result, several prominent New Zealand analysts have predicted double-digit appreciation of the NZD by year-end. The Dominion Post reports:

The Bank of New Zealand is picking the US-NZ dollar cross rate to fall from the current 67.5 level to 67 by September, and to 66 by December. Brokers First NZ Capital expect it to drop even faster – to 66 by September, to 64 by December and to 61 by the end of next year.

Read More: Currency volatility dogs rate forecasts

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Posted by Adam Kritzer | in Exotic Currencies, Investing & Trading | No Comments »

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© 2004 - 2023 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.