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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