dollar drop on rumours
Dollar may have been driven down by false rumours:
(posted 24/03/2006)
A recent drop in the NZ dollar may be due to unfounded rumours, according to BNZ chief economist Tony Alexander.
In a statement released this afternoon,( 23/02/2006) Mr Alexander notes that while the trend for the dollar is "definitely downward through this year and 2007," a sudden, sharp drop of 1.5 cents against the US dollar may be the result of erroneously informed speculation.
Mr Alexander said that exporters may want to contain their excitement for the moment as some of the rumors which have driven our currency lower may prove unfounded - namely Japanese investment banks no longer promoting Kiwi dollar denominated bond issues.
"Plus, we still don't believe the Reserve Bank will be easing monetary policy until early next year and the chances of an early easing have diminished with the currency now sitting almost 3 per cent below the level the Reserve Bank assumed in their inflation forecasts," he said.
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