Sharechat Logo

NZ traders making significant returns from falling dollar

Thursday 15th May 2008

Text too small?
New Zealand exporters are not the only ones benefiting from the falling kiwi dollar.

According to Sargon Elias, General Manager, CMC Markets New Zealand a number of their clients involved in online FX trading have made significant profit in the last 24 hours as they had gone short on the New Zealand dollar.

"Our clients have obviously been watching the trends and various announcements around housing and retail figures closely because no-one has taken a long position on the New Zealand dollar."

Elias believes that latest retail figures will mean Reserve Bank Governor Allan Bollard will cut interest rates if not in July definitely in September which is sooner than may expected.

"He has got the slow down he was looking for in housing and spending so he has room to move but the downside of falling dollar is that already high fuel prices will continue to climb and that has the potential to impact on inflation."

As far as FX traders are concerned Elias expects them to continue to go short on NZD. "We believe the dollar will continue to drop as market data confirms the economic slow down."

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

28th October 2021 Morning Report
Wellington Drive Technologies Limited (NZX: WDT) Performs Strongly in Q3-2021
Ryman Healthcare Limited (NZX: RYM) Acquires Extensions to Two Existing Victorian Sites
Promisia Healthcare Limited (NZX: PHL) Banking Covenant Update
Pictor Limited Announces Start of US Clinical Trials for SARS-CoV-2 Serology Test
Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer