While the New Zealand Black Caps are on par with the Australian Cricket team, the New Zealand dollar isn’t quite as strong . While the NZD seems to be reaching parity with the AUD, Finance Minister Bill English says there is no reason for it to pass the “psychological level”.
Since around 4am on the 19th of February, the New Zealand dollar has been consistently trading above A96.5c, just below the A96.78c level set on Monday, the highest since the currency was freely floated.
Chief Economists and experts are positive about the New Zealand dollars potential to reach parity. ANZ’s New Zealand chief economist Cameron Bagrie has predicted that at some point in 2015, New Zealand will reach currency parity with Australia. The Royal Bank of Scotland’s Asia Pacific team says its possible that parity could be surpassed. The Australian dollar could eventually buy as little as NZ95c.
Today English said he had seen the prospect of parity with Australia raised before, and while it has come to nothing so far, the prospect was looming.
“It’s been close [to parity] before and it dropped back. It’s quite a big psychological level for the market to get over so we’ll just wait and see. I’ll believe it when I see it.” He told reporters in Parliament.
Information curated from Stuff.co.nz.