Tuesday, July 29, 2008

Kiwi dollar nosedives

The exporters who, until recently, were moaning and groaning about the high kiwi dollar must be happy.

As the New Zealand economy has declined, it has taken the dollar with it - from above US82c in mid-March to below US74c last week. It closed today at US74.37c.

But worse is to come. According to a Bloomberg News report last week, Lehman Brothers expects the currency to fall to US64c by the end of the year and to US60c at the close of 2009.

Today, the Bank of New Zealand said the New Zealand dollar could fall closer to US70c by end of the year and to US64c by the end of next year.

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