Jul
12
Foreign Currency Watch - Will the Australian dollar rise any further?
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The US dollar is on a downward trend, and will probably continue so for at least a few months to come. Some brokers are probably making a fortune shorting the US dollar, but beware, the US dollar has risen occasionally over the last few months, and any small time traders making risky contra trades risk being caught out, and potentially making a big loss. Read more
Jan
12
Borrowing Yen to buy NZD
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With the yen interest rates practically scraping zero, corporate investors are borrowing the yen to buy NZD, with it’s steady high interest rate in excess ot 6%. How long will it last? Given that the new zealand dollar has recovered from it’s slide over the last year, it’s still anyone’s guess. Any capital depreciation could still hurt in a big way, like when the NZD slid close to 15% this time last year.
A more solid bet may instead be the steadily rising Australian dollar, which, while offering a more modest interest rate in the region of 5% per annum, has continued to rise over the last year and looks good for another few percentage points of capital gains.
Oct
5
With the high interest that New Zealand is offering on it’s bonds, at 7.25% per annum, and unlikely to go down anytime in the near future, the NZD has risen against the USD.
Sep
12
New Zealand dollar stable, Aussie dollar slowly rising
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The New Zealand dollar ( NZD ) has seen some losses over the last year, due in part to a high interest rate and in the initial months of 2006, fell quite dramatically. However, it seems to be stabilising, and may, optimistically, rise over the next year or so.
Meanwhile, the Australian dollar, buoyed by a strong economy and exports, seems to be doing well, on a bullish run, and is a good bet for foreign investment.