Winston Peters drives the currency lower
Posted August 1, 2007on:
An article on stuff tells me that Winston said the currency was over-valued, and the global traders believed him and drove the dollar lower. Now Bill English thinks this is interest, as currency traders are willing to listen to Peters but not Cullen about the currency being over-valued, therefore Peters must be more credible!
I think the story is a little different. I think traders don’t think the dollar is over-valued, but they got spooked by the fact Peters was talking about it, and they realized that if the currency was a new political issue for him, then the risk from being in the currency market must be higher.
I swear, if Peters fiddles with the Reserve Bank Act I will be very mad. You don’t want to see an (wannabe) economist mad.