What had caused the fall was growing concerns about the lack of a clear endgame for the EU crisis and, overnight, the break up of a “super committee” of legislators in the US without a solution to the US fiscal crisis.
The slide in the New Zealand dollar has little to do with the imminent New Zealand election.
The New Zealand currency continued its slide over the past week, dropping below 75USc this morning.
Last Monday the currency was above 78USc.
New Zealand’s eleciton this Saturday is barely registering with enough overseas investors to make any difference to the currency, says Westpac Bank currency strategist Imre Speizer.
“This is all offshore stuff: I don’t think the election is on anyone’s radar at all offshore,” he said.
What had caused the fall was growing concerns about the lack of a clear endgame for the EU crisis and, overnight, the break up of a “super committee” of legislators in the US without a solution to the US fiscal crisis.
“I know that in New Zealand the polls are showing less chance of a firm government grouping but I don’t think that is even registering with the bulk of the offshore trading community.
“It may do so, after the eleciotn, when they know the makeup of the incoming government, but even then I wouldn’t count on it.”
The New Zealand dollar was 74.89USc just after 2pm today after falling to 74.57USc overnight. The fall is the latest in a roiling 12 months which has seen the currency rise above 88Usc at the start of August – the highest level ever – and dip to just above 71USc in March.
