So we’ve had politicians complain for the last year that the exchange rate is too high and that the NZ Government must either print money or spend billions intervening in the exchange rate to lower the dollar.
Mike Jones, a currency strategist at BNZ, said he expected the kiwi to trade between US76c and US80c in the next three to six months, based on the gyrations of the global economy.
But the general rule at the moment is based on a simple formula: the better the economic data out of the United States, the further the kiwi will fall.
Which is why calls for us to intervene are misguided. It’s like trying to stop a river with a couple of stones.