NZ dollar dives on more global jitters
The New Zealand dollar this morning brushed 77.50USc as the world financial markets took fright at the prospects for the economy.
The New Zealand dollar this morning brushed 77.50USc as the world financial markets took fright at the prospects for the economy.
The slide follows a combination of events, globally and locally. Overnight a report on manufacturing prospects for China and Europe was unexpectedly pessimistic, and almost simultaneously Federal Reserve chairman Ben Bernanke released a statement saying the US economic risks were "on the downside" leading to renewed talk of the US slipping into recession.
Somewhat paradoxically, this led to a flight of investors buying into the US currency, which is still seen as the only "safe haven" in uncertain times.
That led to a selldown of the New Zealand dollar, which was already occurring after a combination of Reserve Bank governor Alan Bollard telling New York financiers the New Zealand currency is over valued and also that he is in no rush to raise the official cash rate, along with an unexpectedly weak New Zealand GDP result yesterday.
[more to come]
Rob Hosking
Fri, 23 Sep 2011
Fri, 23 Sep 2011
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NZ dollar dives on more global jitters
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