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.
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.”
Duncan Bridgeman
Tue, 22 Feb 2011
Tue, 22 Feb 2011
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Earthquake sends Kiwi dollar plunging
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