Genesis

It seems no matter what shit hits NZ's fan the kiwi $ just keeps getting stronger and stronger. Even arvo the Ozzie treasury has mooted that its OCR will be hiked (or has already has done it) and that is bad for us as we cannot follow suit at present (but should), thus investors are more likely to buy Ozzie $, and inspite of that the kiwi is almost upon 74US cents. Are we going to see 80USc and sub $2 for a GBP?

Toon_Nut

I remember Henk Potts from Barclays Finance once mention on Sky some time ago that the NZD was one of the most traded currencies in the top 16 of the world Market due to it's volatile nature.

The currency traders love it as it's so unstable and so unpredictable you can make (or loose as you well know) millions on a daily basis whereas the green back, Euro and Yen are all fairly stable in comparison.

johnht

Or could it be that it's so volatile because it's traded so often

John.

Genesis

Yeah i know it is one of the top 10 traded currencies BUT that does not account for its strength..purely its volatility

Genesis

It is the 9th most traded just now. It has just gone over .74c US and is heading to .75US. Eire is falling apart and Eurobanks are printing money like loo papar. Where the xxxk is all this going to end? .90US and then as the experts say our export market will be ruined. Looks like the GBP is going back down to sub $2.10..being dragged down like the rest of the europe's money.

drrobert

All currencies are trying to devalue as quickly as possible - 'competitive devaluation', in the hope that they can encourage exports and get themselves out of their financial holes.

It's not about perceived strength of the NZ dollar per se, just that it's less weak than other currencies (like the pound or US dollar).

londonescapee

The figures are eye-watering in Ireland for a relatively small population http://www.bbc.co.uk/news/business-11441473 the cost to each taxpayer of bailing out banks estimated at 22,500 euros each

Charismatic

I hope it was worth it for Ireland, for most countries the cost of bailouts where small by comparison.
The effect of competitive devaluation is akin to shipwrecked sailors trying to keep their heads above water by climbing each other’s shoulders. Sad to see a global race to the bottom really as Western nations lose their financial sovereignty but it may leave NZ in a very strong position for people seeking a place to invest.

For most Kiwis the net effect of a strong currency is positive because we run a fiscal deficit .

Genesis

Re the above it is about to happen. Have watched about 4 cent shaved off the GBP in about 24 hours. It is just about to sink below $2.04. The US $ is heading to .80cents and the US looks like the money printing machine are going to be on 24/7 for some time. Perchance a time to buy into a US ink co? Our Uk money is well and truly screwed for the short to medium term, probably also for the long term. A useless currency out of the UK.

zaras dad

No matter what we do , we're always on the wrong end of the currency changing cycle with GBP/NZ.



Not happy

Genesis

Me neither mate, always at the losing end too with matters fiscal. No matter what, shares, cars, forex, finance cos..my middle name is 'lucky'. However I have won the lottery when it comes to my kids (and Kate). They are beautiful, fun, healthy and just bloody marvelous. That is what really, really matters eh??

janeyk

you can not take it with you remember that It hits home every time you loose someone unexpectantly

zaras dad

True, but I'm not thinking that far ahead - I'm trying to get onto the property ladder.....................and spend many years fretting about mortgage repayments

zoglet

Despite the strong kiwi$, anyone seen any evidence that imported products are dropping in price?

Charismatic

We import most goods from China, they aren’t devaluing to remain competitive. Although I notice the Americans are in for another game of currency destruction:

Inflaytion? Inflaytion!