May 15, 2008

Dollar And Interest Rates Heading Down?

Big analysis in the IHT today suggesting that with New Zealand interest rates about to head down, interest in the New Zealand dollar is falling.

Investors expect the New Zealand dollar could soon lose its position as the currency with the industrialized world's highest interest rates and are already shifting to its likely successor - the Australian dollar.

The consequence?

Reuters polls indicate that the New Zealand dollar is expected to fall 4 percent from current levels against the dollar by September, almost twice the pace expected in the Australian dollar.