New Zealand Dollar / US Dollar - NZD/USD

The New Zealand dollar –nicknamed “Kiwi” as the NZD/USD cross traded on the Forex, has been floating only since 1985 against the other great currencies (NZD/USD = 0.4444 in 1985) and we can remember that the lower point of the NZD/USD cross was reached in November 2000 at 0.3922.

Then, we will see, until 2008, to a continuous appreciation of the NZD against the USD in the context of an increase of the farm raw material exchange rates, of which New Zealand is a very important exporter ( 40% of its exports), an appreciation that is also due to the high key interest rates policy (in comparison to the Fed’s ones) run but the Central bank of New Zealand at the same period; the rates differential made for a long time investors do “carry trade” operations in favor of a “strong” New Zealand Dollar.

As this strength handicaps at long term the exports of the country, the central bank of New Zealand tried to intervene directly (but unsuccessfully) on the Forex in June 2007, but didn’t manage to stop the rise of the NZD that lasted until the beginning of 2008.

So the NZD/USD cross had an exchange value of 0.7005 in February 2004, and reached the higher point of 0.8213 in February 2008.

With the collapse of the raw material rates began a depreciation of the New Zealand Dollar  against the US dollar, a depreciation that went on across the banking and stock-exchange storm during the Fall of 2008 until a lower point NZD/USD = 0.5006 (- 40% in a year) reached in March 2009.

Then, the rise of the New Zealand Dollar is also fast and important, the NZD appreciates again by 50% in six months, with an exchange value of NZD/USD = 0.7544 on the Forex in October 2009.