RBNZ: carry trade reversed depreciation in NZD
A paper published in the September Reserve Bank of New Zealand Bulletin on Thursday says the decline in the New Zealand dollar relative to the US dollar during the crisis was gradually reversing due to the carry trade from high yielding currencies.
From 2007 to early 2009, during the peak of the crisis, the New Zealand dollar fell by 35%, on a trade-weighted basis against the US dollar. Enzo Cassino and Zoe Wallis, the authors, claim that the rapid decline in the exchange rate was a direct
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