Earthquake sends Kiwi dollar plunging
The Kiwi dollar plunged against the US dollar within minutes of a major earthquake that rocked the South Island this afternoon. Wholesale interest rates also fell 6 basis points.
The Kiwi dollar plunged against the US dollar within minutes of a major earthquake that rocked the South Island this afternoon. Wholesale interest rates also fell 6 basis points.
The Kiwi dollar plunged against the US dollar within minutes of a major earthquake that rocked the South Island this afternoon.
Westpac senior market strategist Imre Speizer said the dollar fell more than half a US cent from US76.35c to US75.67c.
“It’s just continued to plunge in a straight line,” he said.
Two-year interest rate swaps also fell sharply, indicating the market’s early assessment is the earthquake could hinder an economic recovery.
“They’ve fallen 6 basis points which is quite significant for wholesale interest rates, they usually don’t fall too much on these things. They usually don’t move too much in a day.”
Mr Speizer said currency traders reacted with speed.
“ The astonishing thing here was the Kiwi started to move well before any media reports. The word and mouth had the effect already.”
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