Exchange rates
Tony Alexander's economic commentary.
BNZ Chief Economist, Tony Alexander, writes about exchange rates in this week's edition of his Weekly Overview. Download the full commentary below.
Exchange rates and foreign economies
Kiwi Little Changed
The Kiwi has ended the week virtually unchanged against the crosses but has fallen against the greenback mainly on the back of today’s (long overdue and realistic) warning from NZ Treasury that the NZ government may not return to surplus in 2014/15. Weakness against the British pound and Euro has been stemmed by their generalised selling following Moody’s decision to cut some credit ratings and warn about others. There was little reaction overnight to the 3% fall in average prices at Fonterra’s fortnightly auction, though some light buying followed the much better than expected retail sales numbers for the December quarter which were released yesterday.
