The Advantages of a High NZ Dollar – Two Opposing Views – 26 Febuary 2013

Here is Keys view from todays session on TV3 (see here). You have to agree.  If the the value of our dollar was low then we would all be walking. Alternatively, one wonders how some companies are doing well versus those that don’t. For example, Fisher and Paykel Healthcare and Air New Zealand are doing very well.

Here is the 10 year NZD/USD relationship from Google Finance. If you look at this relationship you can see things have got pretty crazy from about 2008: the big CRASH. Boom. So, the USD dollar weakening is playing a massive role. I think also that in some economies people are getting pretty desperate – pretty much also in terms of retirement income. So, in desperation they rush to NZD to improve their own personal returns.  That is a pretty risky strategy as things could change quickly.  Check the volatility at the moment.  Look at this comment on the fear index.

Google Finance NZD/USD Relationship: As at 26th Febuary 2013