Our finance minister has decided to explain why the currency popped over US$0.81 today:
“The story of the last couple of days is very much the story of the US dollar continuing to decline. We really haven’t changed much against currencies like the Australian and so on over that period of time and nothing we can do can affect the United States dollar in coming down.”
Now if he was talking about how the currency had moved over the past year he would be right. We have moved more against the yen and the $US than other currencies. However, he is talking about the last few days. During this time our currency has appreciated against all the major currencies. This is because everyone thinks we will lift rates again, so they are all getting excited. I agree we can’t stop the US$ falling, however thats not the reason for the NZ$ appreciation over the last few days.
It amazes me that he can say things without looking at the numbers, he’s just lying. Now I know he’s not an idiot (although I’m sure some of you will try to argue that with me), he’s just manipulative, and he shouldn’t be allowed to talk such tripe.