Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


How Low Will It Go? - Kiwi Falls To All-Time Low

*** NEWSFLASH: Dollar Falls below 42.5 US Cents. ****
For latest price see…
http://quote.yahoo.com/m5?a=1&s=NZD&t=USD

The fall in the NZ Dollar over the last 48 hours is quite unlike any “correction” seen in the NZ currency in the past.

When the NZ Dollar fell sharply during the Asian Economic Crisis 1998 it fell with the Australian Dollar, the Yen and a basket of ailing Asian currencies.

And while there were large movements against the USD the TWI (Trade Weighted) movements were more subdued.

This time however it is the TWI that is falling through the floor. Which, as Deutsche Bank economist David Plank says, means that this is not simply the result of a strong US Dollar – rather it is weakness of the Kiwi itself that is driving the fall.

After bouncing back in the early part of this morning the NZ Dollar resumed its path downwards at 11am after the release of trade statistics showing a July 2000 trade deficit of $330 million, up from $147 million last July.

Around 11.30am it was approaching US 42.5 cents an all time low against the US Dollar experienced shortly before the dollar was floated in 1984. As this article is published the NZ Dollar is buying 42.39 cents an all-time low against the Greenback.

Arthur Grimes (formerly of the National Bank now of Victoria University) was trying this morning to out a brave face on the collapse in the Kiwi when interviewed on Radio New Zealand.

Grimes argued that the lower dollar will further boost the competitiveness of the export sector and may lead to a correction in New Zealand’s awful current account statistics.

A similar theme was followed by Finance Minister Michael Cullen at a speech to a WestpacTrust Stadium business audience where he warned again against the dangers of “talking down” the NZ economy.

The problem is however that this is not simply a matter of an economy that is being talked down.

According to David Plank and several other leading bank economists we have a situation where international investors are simply no longer interested in the NZ economy. New Zealand is, it is said, “no longer on the radar screen”.

“So how far will the Kiwi fall?” Scoop asked Plank.

“Anyone that says they know is lying. But I wouldn’t be surprised if it fell through 40 US Cents,” Plank replied.


© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>

ALSO:

Buildup:

Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>

ALSO:

Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>

ALSO:


Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news