New Zealand Dollar / Yen - NZD/JPY

Thanks to a high interest rate policy run by the New Zealand central bank and a (nearly’ continuous increase of the farm raw material world exchange rates from 2004 to the end of 2007 (and more particularly from 2006 to 2007), rates of which the external value of the New Zealand dollar really depends on as 40% of the New Zealand exports are done on farm products, the “Kiwi” kept being stable against the Yen  (JPY) in the same period, the general trend was an appreciation of the New Zealand dollar against the Yen.

More precisely, the NZD/JPY cross was at NZD/JPY=72 by the end of 2004, and NZD/JPY=85 by the end of 2005.  

After an adjustment in favor of the Yen at the end of the first quarter of 2006 (NZD/JPY=69 in April 2006), the New Zealand dollar increased again to reach the higher NZD/JPY= 95 in July 2007.

A stabilization of the cross fluctuations happened around NZD/JPY= 80 from the end of the Summer of 2007 to the end of the first quarter of 2008; but in the context of a strong decrease of the farm raw material exchange rates, we saw a real collapse of the NZD/JPY parity, with first NZD/JPY=60 in September 2008, then NZD/JPY= 47 in February 2009.

In a year, the New Zealand Dollar had lost 40% of its value against the Japanese Yen.

An important adjustment happened in favor of the Kiwi, certainly helped by its clear re- appreciation against the American dollar, and the cross has the exchange value NZD/JPY=66.329 at the beginning of November 2009 and NZD/JPY= 61.538 at the very end of November 2009.