Forum Archive Index - February 2000

[james chamley <james.chamley@xtra.co.nz>]

I have seen several comments recently (most lately NZ Investors Monthly
January 00, Unlimited jan 00) speculating that the $NZ will move from
$US0.50 to $US0.60 over the course of the year.

I understand that most of this is interest rate driven but would
appreciate the members comments on this and also the impact that that
has on diversification into overseas markets.  

There seems to me to be little likelihood of a vast capital inflow into
New Zealand (ie no major asset sales and an unhelpful Government
environment for investment) aside from funds pursuing those higher rates
of interest.

However, it would seem to me that if that appreciation of the $kiwi
occurs then you are down 20% before the stock price has moved if you
invest overseas but expect to repatriate the funds at some stage.

Regards to all


James

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