Dollar up as markets react to election result
The New Zealand dollar is expected to rise this morning on the back of Saturday's election win for the National-led government.
The New Zealand dollar is expected to rise this morning on the back of Saturday’s election win for the National-led government.
The currency has been on a slow slide since the start of the month – down from US80.76 at the end of October to US73.71 at the end of last week.
This morning the currency has risen slightly and that could continue, says Bancorp Treasury Services. The New Zealand dollar was at US73.99 just before 9am and trending upwards.
“The re-election of Prime Minister John Key is likely to give the New Zealand dollar some support this morning …
Securing a second term allows Key to expand policies aimed at reducing the economy’s reliance on government spending and will likely be seen as a favourable outcome by international financial markets and credit rating agencies.”
The election result was “is a good outcome, but not one to ensure a credit rating upgrade any time soon,” said Singapore-based TD Securities strategist Annette Beacher.
“Nevertheless, the National Party has a clear mandate to proceed with asset sales to lower fiscal deficits and government debt. But to be honest, this election was not on global investor radar screens, so after a flurry at the New Zealand market open, will likely be completely ignored by subsequent regional financial markets as the outcome was ‘as expected’.”
Rob Hosking
Mon, 28 Nov 2011
Mon, 28 Nov 2011
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Dollar up as markets react to election result
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