When risk is real
Every now and again we receive a shock to remind us just what risk really means. Now is one of those times in the markets. The adjustment is not yet over … Read Disentangling risk and return
Entries for July, 2007
Measuring up against the Australians
The NZD/USD hit another 21-year high last week. The AUD/USD also reached its highest level since 1989. But the NZD/AUD was up a mere 0.2% in spite of the local talk of another RBNZ hike. What is driving the NZD? … Read Exploring some options for the next 6 months
Decision time again
The RBNZ must decide next week whether or not to hike the cash rate again. One way or other it will cause an exchange rate reaction … Read Obstacles along the way
What is the correct NZ dollar?
Exchange rates are the result of an interaction between decisions about how to structure one’s portfolio and decisions about trade, production and investment. Different perspectives offer different measures of the fair-value for the NZ dollar … Read Finding the correct exchange rate
Too high
The upward NZ dollar march continued last week. Watch for some volatility this week as the RBNZ possibly repeats its intervention in another holiday-interrupted week … Read The rubber band is pulled tighter
